No Plans to Lift New Zealand’s Official Cash Rate Anytime Soon
June 28, 2018
The best contribution we can make to maximising sustainable employment, and maintaining low and stable inflation, is to ensure the OCR is at an expansionary level for a considerable period.
So concludes today’s Reserve Bank of New Zealand’s released statement following the decision to retain the OCR at a record low of 1.75%. The OCR has been at that level since a 25-basis point cut in November 2016. It was slashed in half over the 17 months between June 2015 and that most recent reduction. In their latest policy review, officials found global inflationary pressure “modest.” trade tensions and ongoing volatility in some emerging economies bear watching. Note is made too that New Zealand growth recently hasn’t quite measured up to expectations: “the recent weaker GDP outturn implies marginally more spare capacity in the economy than we anticipated.”
Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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