New Zealand - Risk of a step change in policy when Orr takes the helm

The Reserve Bank of New Zealand will almost certainly keep the official cash rate on hold at 1.75% at Grant Spencer’s final meeting as Governor on Thursday 22nd March and it’s likely to reiterate that policy will remain accommodative for a considerable period of time. The bigger uncertainty, however, is whether there will be a step change in the way that monetary policy is conducted as a result of the change in Governor on 27th March or the addition of an employment mandate to the RBNZ’s objective of price stability.