Reserve Bank of New Zealand

Reserve Bank of New Zealand

September 28, 2017

New Zealand’s official cash rate has been at a record low of 1.75% since a 25-basis point reduction in November 2016, and that’s only half as high as the 3.50% peak maintained from July 2014 until June 2015. Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to […] More

U.S. Tax Reform Details Extend Rise in Sovereign Debt Yields

September 28, 2017

Ten-year sovereign debt yields climbed additionally overnight by 3 basis points in the U.S., Japan and Germany and 2 bps in Great Britain. The dollar see-sawed. On balance, it advanced 0.4% against the Australian dollar and Chinese yuan and by 0.2% versus the Swiss franc, but it slipped 0.2% against the euro and 0.1% relative […] More

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 forĀ  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