At its 25 October monetary policy meeting, the Reserve Bank of New Zealand (RBNZ) maintained the official cash rate (OCR) unaltered at a record-low 2.50%, in a decision that was widely expected by the market. The move means that monetary policy officials have maintained the main monetary policy rate unchanged since March 2011. The decision was the first for newly appointed Governor Graeme Wheeler, who took over from Alan Bollard in late September. In its accompanying statement, the Bank explained that the economy continues to expand at a modest pace, as housing activity continues to grow and reconstruction in Canterbury is providing a boost to the construction sector. That said, monetary authorities emphasised that fiscal consolidation is likely to cool domestic demand, while adding that a strong New Zealand dollar continues to dampen exports. Moreover, the Bank acknowledged that global economic activity remains fragile, with further recovery depending on policy implementation. Regarding price developments, the Bank anticipates inflation to remain low going forward, with authorities expecting inflation "to head back towards the middle of the target range". Consequently, the Bank stated that "for now, it remains appropriate for the OCR to be held at 2.5 percent". The next monetary policy meeting is scheduled for 6 December.
New Zealand Monetary Policy
Reserve Bank of New Zealand keeps interest rates unchanged
October 25, 2012
Looking for forecasts related to Monetary Policy in New Zealand? Download a sample report now.
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.