Hawkesby Reaffirms Optionality & Suitability Of Policy

BBG running an interview with RBNZ Assistant Governor Hawkesby, nothing new here with the RBNZ seemingly looking to reaffirm its dovish inclinations in the wake of the recent hawkish market re-pricing, while underscoring its credentials re: it's ability to fight dysfunctional bond market moves:

• Can increase weekly bound purchase sizes if needed, watching yields very closely. Flags pockets of dysfunction in the bond market last week.
• Reaffirms the Bank's commitment to prolonged stimulus, as well as optionality re: further OCR cuts if needed.
• Continues to highlight the fragile and uneven recovery within the domestic economy.
• Notes that the appropriate tool for addressing issues within the housing market fall under the macroprudential umbrella, with the Bank's adjusted remit tasking the MPC with assessing the impact of monetary policy on the housing market, as opposed to it driving the outright direction of monetary policy.