Reserve Bank of New Zealand
Reserve Bank of New Zealand Retains 1.75% Official Cash Rate as Expected
August 9, 2017
The last of seven straight 25-basis point interest rate cuts was implemented eight months. This cycle began in June 2015 after nearly a year in which the official cash rate crested at 3.5%. A released statement, like the one before released in June, suggests the policy bias in the short term leans toward further ease. […] More
Reserve Bank of New Zealand Policy Rate Unchanged
June 22, 2017
From a high of 3.5% between late July 2014 and mid-June 2015, the RBNZ’s official cash rate was cut in half via seven 25-basis point reductions. The last of these occurred in November 2016 and left the OCR at its current 1.75% level. A statement released following the latest policy review defends continuing an accommodative […] More
Little Change in the Dollar as Oil Stays Low
June 22, 2017
The U.S. dollar has lost 0.4% against the kiwi, 0.2% versus the peso and loonie and 0.1% relative to the yen but risen 0.2% against the Australian dollar and 0.1% vis-a-vis the euro, Swiss franc and yuan. Although 0.6% higher overnight, WTI crude oil remains very depressed at $42.79 per barrel, 21.4% lower than its […] More
Reserve Bank of New Zealand
May 11, 2017
As they did at the first two policy reviews of 2017, monetary officials left New Zealand’s official cash rate unchanged at 1.75%, the level reached after a 25-basis point cut at the final meeting of 2016. In all, three 25-bp cuts were engineered in 2016 following four such moves between June and December of 2015. […] More
New Zealand Official Cash Rate Held Steady at 1.75%
March 22, 2017
As they decided at the first 2017 meeting held February 9, policymakers at the Reserve Bank of New Zealand agreed to keep their key interest rate at 1.75%, a record low reached after a 25-basis point cut last November. That was the seventh 25-basis point reduction since June 2015. The official cash rate had been […] More
Reserve Bank of New Zealand: “A Decline in the Exchange Rate Is Needed”
February 8, 2017
New Zealand’s Official Cash Rate had stayed at 3.5% from July 2014 to the policy review in June 2015 but was subsequently halved in seven steps through the final meeting of 2016 in December. At this year’s first central bank meeting, the 1.75% OCR level was retained and upbeat assessments were expressed about the strength […] More
New Zealand Gets an Interest Rate Cut of 25 Basis Points
November 10, 2016
The Reserve Bank of New Zealand’s new Official Cash Rate level is 1.75%, the lowest ever, and this third such cut in 2016 was largely motivated by a need to depreciate the kiwi, which has become “higher than is sustainable for balanced economic growth” and because an overvalue currency is depressing inflation associated with tradable […] More
Reserve Bank of New Zealand: No Rate Change this Time but More Ease Possible in the Future
September 22, 2016
New Zealand’s Official Cash Rate, which had been cut this year by 25 basis points each in March and August, was left at the record low of 2.0%. There also had been four 25-bp reductions during 2015 and four increases of like amount during 2014. A statement released by Governor Wheeler today reiterated that the […] More
Central Banks Setting the Market Tone
September 22, 2016
Yesterday’s eagerly awaited Federal Reserve and Bank of Japan meetings have been followed today by monetary policy decisions in New Zealand, Norway, The Philippines, Indonesia and Turkey with South Africa and public comments from ECB President Draghi still to come. Overall, the tone from central banks has been dovish, creating incentives for funds to gravitate […] More
New Zealand’s Official Cash Rate Sliced 25 Basis Points to 2.0%
August 10, 2016
Four sentences from a statement released by the Reserve Bank of New Zealand explain why the OCR was cut today and the likely direction of the next interest rate change. Weak global conditions and low interest rates relative to New Zealand are placing upward pressure on the New Zealand dollar exchange rate. Headline inflation is being […] More
