New Zealand skyline

New Zealand Monetary Policy November 2023

New Zealand: RBNZ stands pat in November

At its 29 November meeting, the Reserve Bank of New Zealand (RBNZ) left the official cash rate (OCR) unchanged at 5.50%.

The Bank decided to stand pat as it estimated that previous monetary policy tightening was already cooling demand dynamics and, therefore, inflationary pressures. That said, the RBNZ warned that “inflation remains too high, and the Committee remains wary of ongoing inflationary pressures”.

Looking forward, the Bank stated that “OCR will need to stay restrictive, so demand growth remains subdued, and inflation returns to the 1 to 3 percent target range”. The vast majority of our panelists expect rate cuts for next year, as inflation moderates further from current levels.

The next monetary policy meeting is scheduled for 28 February.

Commenting on the outlook, Lee Sue Ann, economist at UOB, stated:

“Tighter fiscal policy will further weigh on growth, though most fiscal measures will likely be announced only during the May 2024 budget, and implementation likely to take some time. Nonetheless, we think the RBNZ will have to cut rates sooner than its own projections imply”.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest