RBNZ keeps OCR unchanged at 2%: further easing will be required
|The RBNZ left its official cash rate (OCR) unchanged at 2.00% as widely expected and highlighted in their statement that a decline in the New Zealand Dollar is needed and adds that further easing will be required.
Key headlines (via Reuters):
- Monetary policy to remain accomodative
- A decline in the NZD is needed
- Further easing will be required
- Weak global growth and low rates putting upward pressure on nz$
- Says high NZD makes it difficult to reach inflation target
- Further declines in inflation expectations still a risk
- Domestic growth supported by strong migration, tourism, construction
- Strong immigration is limiting wages pressure
- A decline in the exchange rate is needed
- Watching data closely
- Volatility in global markets has increased
- House price inflation remains excessive
- Outlook for global growth, commodity prices remains uncertain
- Annual cpi inflation expected to weaken in sept quarter
- Long term inflation expectations well anchored at 2 pct
- Outlook for dairy season remains very uncertain
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