Reserve Bank of New Zealand

Reserve Bank of New Zealand

June 11, 2015

In an unexpected move, New Zealand’s Official Cash Rate was cut for the first time since March 2011.  The drop to 3.25% from 3.5% left the OCR still 75 basis points above the 2.50% low over the two years from March 2011 through March 2013, and an accompanying statement failed to rule out additional monetary […] More

Reserve Bank of New Zealand Keeps Official Cash Rate at 3.5%

April 29, 2015

The OCR has been at 3.5% since a 25-basis point hike last July, but the policy bias is toward easing as attested by this passage from the latest policy statement: The Bank expects to keep monetary policy stimulatory, and is not currently considering any increase in interest rates. We are watching closely the ongoing impact […] More

Weaker-than-Expected PMIs and a Market-Moving Comment from John McDermott

April 23, 2015

The kiwi slumped 1.4% after Reserve Bank of New Zealand Assistant Governor McDermott said that policymakers are not currently contemplating a further rise in the official cash rate. Otherwise the U.S. currency fell overnight by 0.6% against the Swiss franc and 0.1% versus the euro but rose by 0.4% relative to the Australian dollar, 0.2% […] More

Reserve Bank of New Zealand Leaves Key 3.5% Interest Rate Unchanged

March 11, 2015

Monetary officials continue to encourage a shift in market expectations about its future policymaking.  As recently as two meetings ago in December, officials retained the view that excess capacity would be diminishing and that more rate hikes would be required.  The Official Cash Rate had been at 2.5% for three years following a 50-basis point […] More

Reserve Bank of New Zealand

January 28, 2015

The latest Board meeting with a decision to keep New Zealand’s official cash rate at 3.5%, the level since the fourth straight 25-basis point hike lf 2014.  The four increases, respectively in March, April, June and July, followed a three-year span with no change.  Today’s statement was more dovish than the previous one because of […] More

Reserve Bank of New Zealand Tightening Kept on Pause

December 11, 2014

Rate normalization began earlier this year with 25-basis point hikes of the New Zealand official cash rate in March, April, June and July.  Like their two earlier meetings, officials did not tighten further at the final scheduled policy review of 2014, preferring to keep the OCR at 3.5%.  A released statement observes benign inflation currently […] More

Reserve Bank of New Zealand Continues 3.5% Official Cash Rate

October 29, 2014

Four 25-basis point interest rate hikes were implemented this year at meetings in March, April, June and July, but this month’s meeting like that in September kept policy on hold.  Indeed, the kiwi remains too high, CPI inflation is still only modest, and house price pressures have eased significantly. Lower commodity prices and increased global […] More

Reserve Bank of New Zealand Confirms Pause in Interest Rate Normalization

September 10, 2014

New Zealand’s Official Cash Rate had been raised by 25 basis points each in March, April, June and July of this year, but the statement accompanying the last of these increases signaled that no more hikes would be undertaken before officials had ample time to assess the impact of the four tightenings already done.  Sure […] More

PMI’s, Japanese Trade, British Retail Sales, and an Important New Zealand Statement

July 24, 2014

Preliminary purchasing manager survey results for July showed An 18-month high in Chinese manufacturing growth. Faster euro area growth especially in the services but also manufacturing. Slower manufacturing growth in Japan.  Japanese customs trade data for June also were disappointing.  There was an unadjusted JPY 822 billion deficit, which was the 24th shortfall in a […] More

PMI’s, Japanese Trade, British Retail Sales, and an Important New Zealand Statement

July 24, 2014

Preliminary purchasing manager survey results for July showed An 18-month high in Chinese manufacturing growth. Faster euro area growth especially in the services but also manufacturing. Slower manufacturing growth in Japan.  Japanese customs trade data for June also were disappointing.  There was an unadjusted JPY 822 billion deficit, which was the 24th shortfall in a […] More

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