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:
https://www.rbnz.govt.nz/news/2019/03/official-cash-rate-unchanged-at-1-75-percent
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
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