RBNZ Cut The OCR To 1.5% - APAC Update

Xe Corporate APAC

May 8, 2019 2 min read

The Reserve Bank of New Zealand has cut the Official Cash Rate to 1.5 percent, this was a 50/50 call prior to the meeting. The NZD plunged lower in immediate response.

The key points in the RBNZ statement and full monetary policy statement are:

  1. OCR cut by 0.25% to 1.50%.

  2. Committee reached decision to cut by consensus (first meeting of new committee)

  3. Committee reached a consensus that a lower path for the OCR over the projection period was appropriate

  4. Members agreed given weaker domestic spending, and projected growth and employment headwinds, there was a need for further monetary stimulus

  5. Key downside risk was a larger than anticipated slowdown in global economic growth, particularly in China and Australia

  6. On balance, the committee was more concerned about a continued global slowdown rather than a faster recovery

  7. Committee noted upside and downside risks to the investment outlook

  8. Was agreed that the outlook for employment growth is more subdued and capacity pressure is expected to ease slightly in 2019

The next OCR decision will be held on the 6th June.

Our *MarketWatch* page is live, please click here to access.

Get in touch with us for more information or pricing.

*Would you like daily international currency market news and insights delivered to directly to your inbox? Sign up to our country-specific updates below, and please browse the rest of our blog for more insights from XE offices around the globe.*

**Australia Morning Update  |  New Zealand Morning Update**

Please Note:
The information, materials, accompanying literature and documentation available on our internet site is for information purposes only and is not intended as a solicitation for funds or a recommendation to trade. XE, its officers, employees and representatives accept no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.

While we take reasonable care to keep the information on the website accurate and up to date, there may be occasions when this is not possible. Case Studies and articles are not intended to predict future moves in exchange rates or constitute advice.

XE makes no representations, warranties, or assurances as to the accuracy or completeness of any information derived from third party sources. If you are in any doubt as to the suitability of any foreign exchange product that you are intending to purchase from XE, we recommend that you seek independent financial advice first.

For more information about XE, please click here: Regulatory Information