At its 26 July monetary policy meeting, the Reserve Bank of New Zealand (RBNZ) maintained the official cash rate (OCR) unchanged at a record-low 2.50%, in a decision that was in line with market expectations. The Bank's decision means that officials have left the main monetary policy rate unchanged for 16 months. In its statement, the Bank continued to asses that the outlook of some of New Zealand's trading partners, particularly several Eurozone economies, remains bleak. That said, the RBNZ underlined that economic activity will grow modestly over the next few years. Rising housing activity due to low interest rates and reconstruction in Canterbury are expected to provide a boost to economic growth. On the other hand, the Bank anticipates that fiscal consolidation and fluctuations in the exchange rate will likely constraint growth in domestic demand. Regarding price developments, the RBNZ stressed that annual inflation, which currently stands below 2.0% is expected to settle near the mid-point of the target range and therefore it remains appropriate for the OCR to be held at 2.50%. The next monetary policy meeting is scheduled for 13 September.
New Zealand Monetary Policy
Central Bank leaves rates unchanged
August 26, 2012
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New Zealand Monetary Policy Chart
Note: Official Cash Rate (OCR) in %.
Source: Reserve Bank of New Zealand.
New Zealand Economic News
October 19, 2016
In Q3, consumer prices edged down from the quarter-on-quarter seasonally-adjusted 0.4% increase observed in Q2 to 0.2%.
September 30, 2016
Economic sentiment among New Zealand businesses rebounded in September after declining for two consecutive months.
September 22, 2016
At its meeting held on 22 September, the Reserve Bank of New Zealand (RBNZ) decided to keep the Official Cash Rate (OCR) at 2.00%.
September 19, 2016
New Zealanders’ confidence rose in Q3 after having deteriorated in the previous two quarters.
September 15, 2016
GDP grew a seasonally-adjusted 0.9% over the previous quarter in Q2, which matched the result tallied in Q1.