RBNZ Assistant Governor Hawkesby has said "We are watching inflation expectations closely

• RBNZ speakers commenting and sticking to the dovish script.
• NZD/USD has been suffering on the surprise rate cut and is -6% since mid-July swing highs.

RBNZ Assistant Governor Hawkesby has said, "We are watching inflation expectations closely."

In other comments, RBNZ Assistant Governor Hawkesby said, "we would need to exhaust our conventional policy tools first; unconventional tools are a contingency in case inflation tanks."

• RBNZ: Surprise 50bps OCR cut – Westpac

Earlier in the session, we heard from both the governor Orr and Hawkesby:

• RBNZ Governor Orr: "... we will have to lower the interest rate further"

Key quotes from Orr and RBNZ assistant governor:

• Orr says easily within errors of the margin of forecasts to end up in a position where negative interest rates needed to stimulate the economy.
• Orr says the threat of us-china trade issues has lingered too long, creating global economic uncertainty.
• RBNZ assistant governor says us-china issues ‘a major part’ of lower than expected domestic business confidence.
• Orr says positive interest rates at low levels are just as effective as ever.
• Orr says in the absence of consumers, businesses or government spending as expected we will have to lower the interest rate further.