RBNZ's McDermott: Markets missed downside risks to outlook for interest rates

Assistant Governor John McDermott is crossing the wires, via Bloomberg, following an interview yesterday, noting that markets missed the downside risks to the outlook for interest rates presented in Thursday's monetary policy decision.

Headlines

Says the RBNZ highlighted two alternative scenarios in its statement, and both of them were on downside risks to rates

Says the longer the NZD stays elevated the more it damps tradable inflation and makes it harder for the central bank to meet its mandate

The more that happens, it means monetary policy would have to do even more work to compensate that particular headwind.