Reserve Bank of New Zealand
February 8, 2018
New Zealand’s Official Cash Rate was left at 1.75%. In seven increments of 25 basis points, such was halved between June 2015 and November 2016 and has been at 1.75% fifteen months. A released statement from the central bank notes that inflation has been weaker than expected lately, projects a rise of inflation in the future towards the midpoint of the target range, but strongly defends the continuing need for an accommodative policy stance. “Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly.” So far, officials are okay about the kiwi’s appreciation but assume “the trade weighted exchange rate will ease over the projection period.”
Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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