Reserve Bank of New Zealand

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

Reserve Bank of New Zealand Retains Record Low 2.25% Cash Rate

June 9, 2016

At a second straight monetary policy meeting, New Zealand’s official cash rate was not changed.  Beginning at the year-earlier meeting in June 2015, five reductions were engineered by March 2016, and these more than reversed the four 25-basis point tightenings to 3.5% between March 2014 and July 2014.  A statement explaining today’s decision talks about […] More

Reserve Bank of New Zealand: No Changes

April 27, 2016

New Zealand’s Official Cash Rate was left at 2.25%, and a released statement said the kiwi remains overvalued, inflation is low, and that “further policy easing may be required to ensure that future average inflation settles near the middle of the target range.”  The OCR was sliced by 25 basis points at the last meeting […] More