13 novembre 2019 — 2 min read
The RBNZ have the Official Cash Rate (OCR) constant at 1.00% - this surprised the market, who were expecting a rate cut.
The NZ Dollar has rocketed higher across the board.
The key points in the RBNZ statement are:
The committee agreed that economic developments since the August had been offsetting for the monetary policy outlook
Noted that the risks to the economy in the near term were tilted to the downside
Agreed it would add further monetary stimulus if economic developments warranted
Debated the costs and benefits of keeping the OCR at 1.0% versus reducing it to 0.75%
Agreed that both actions were broadly consistent with the current OCR projection
Agreed reduction in the OCR over the past year was transmitting through the economy and would take time to have full effect
Noted the bank’s work programme assessing alternative monetary policy tools in the New Zealand environment
Noted that business surveys suggest weak growth has continued over the second half of 2019
Agreed that accommodative monetary policy remains necessary to continue to meet their inflation and employment objectives
The NZD is higher in immediate response.
The next OCR decision, along with a full Monetary Policy Statement, will be held on the 12th February 2020.
Current indicative levels are:
NZD-USD 0.6400 / 0.6425
NZD-AUD 0.9345 / 0.9370
NZD-EUR 0.5810 / 0.5835
NZD-GBP 0.4975 / 0.500
NZD-JPY 69.70 / 69.95
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