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Orr Weighs In On Asset Price Inflation & Risky Lending

RBNZ

BBG has covered comments made by RBNZ Governor Orr at the INFINZ conference.

  • Orr has noted that the Bank remains aware of the limits of monetary policy and its impact on asset price inflation but stressed that the Bank must continue to operate with medium term goals in mind. He also stressed that the Bank wants capital to be deployed outside of the property market.
  • Orr noted that the Bank has plenty of room left within its QE operations, and reiterated that it will issue an update on its tools in November (when a funding for lending scheme is expected to be outlined/deployed).
  • Orr pointed to a preference in dealing with too much inflation, as opposed to too little.
  • Orr also flagged an uptick in higher leverage lending, while indicating a willingness to deploy tools to negate the impact of such developments, if they become a worry.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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