Stay updated with breaking news from February Statement. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
RBNZ leaves Official Cash Rate at 5.5%, but says domestic inflation is slow to fall and now puts a 60% chance of a further OCR hike by the end of this year; now doesn't see inflation getting back under 3% till the fourth quarter of the year
Today's RBNZ update leaves us comfortable for now with our forecast of a first policy easing in February next year, followed by only gradual policy easing thereafter. Future inflation data will be key in driving our OCR view with the risk that easing comes later than currently expected.
We don't expect any significant change to the RBNZ's "Watch, Worry and Wait" strategy it has been following since the May 2023 Monetary Policy Statement.
The RBNZ left the OCR at 5.5% as expected. The record of the meeting states that the risks to the outlook were viewed as "little changed" since the February Statement.
The Monetary Policy Committee today agreed to leave the Official Cash Rate (OCR) at 5.50 percent. The New Zealand economy continues to evolve as anticipated by the Monetary Policy Committee. Current consumer price inflation remains above the Committee's 1 to 3 percent target range. A restrictive monetary policy stance remains necessary to further reduce capacity pressures and inflation.