RBNZ Official Cash Rate Decision - NZD Sharply Lower

Xe Corporate APAC

March 27, 2019 2 min read

The RBNZ have maintained the Official Cash Rate (OCR) at 1.75%. This was widely expected, however they said the next move in the OCR is more likely to be a cut than an increase.

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

  • More likely direction of New Zealand's next OCR (Official Cash Rate) move is down

  • Employment is near its max sustainable level

  • Global economic outlook has continued to weaken

  • Expect low interest rates, increased govt spending and investment to support growth over 2019

  • Weaker global economic outlook and reduced momentum in spending behind shift in rates outlook

  • Expected easier policy in other countries placing upward pressure on NZD

The NZD is sharply lower across the board – all on news the RBNZ’s bias is now towards a rate cut.

The next OCR decision, Monetary Policy Statement and press conference will be held on 8th May 2019.

Below is the link to the RBNZ press release:

Current indicative levels are:

NZD-USD            0.6805 / 0.6830
**NZD-AUD            0.9570 / 0.9595**
**NZD-EUR            0.6040 / 0.6065**
**NZD-GBP            0.5150 / 0.5175**
**NZD-JPY               75.25 / 75.50**

Please contact us for further information or pricing.

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