New Zealand OCR Left Unchanged at 2.5%

October 30, 2013

As analysts, the Reserve Bank of New Zealand policymakers led by Governor Wheeler kept the Official Cash Rate at 2.5%, its level since March 2011.  A released statement reiterated that “increases will likely be required next year.”  GDP advanced more than 3.0% over the past year led by consumption and construction, and on-year CPI inflation is projected to climb from 1.4% at present and hover near the 2% target midpoint in 2014.  High house price inflation is seen settling back, but policymakers will act to ensure that such doesn’t ignite broader inflationary pressures.  Officials used this opportunity once again to indicate that an elevated kiwi is weighing on export demand. 

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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