New Zealand Official Cash Rate Left Unchanged
July 12, 2023
As expected, the Reserve Bank of New Zealand’s scheduled policy review ended with no change in the 5.5% Official Cash Rate level but a pledge by officials to keep their policy stance restrictive for the foreseeable future. Beginning with a doubling of the OCR in October 2021 to 0.50%, the rate was increased at a dozen consecutive policy reviews, including hikes earlier this year of 50 bps in February and April and 25 bps in May. But May’s statement of explanation had signaled an end to that tightening streak, noting that inflation has likely peaked but suggesting that the OCR is unlikely to be released until just after the middle of 2024.
Copyright 2023, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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