Following its October monetary policy meeting, the Reserve Bank of New Zealand (RBNZ) board members decided to hold the Official Cash Rate (OCR) unchanged at 5.5%, as widely expected.
RBNZ leaves key rate unchanged at 5.5%, looks to keep in restrictive territory
RBNZ LAST MOVEMENTS ON INFLATION CONTROL
Central bank’s dual mandate as “normal” and not something that’s caused inflation or interest rates to be unnecessarily high. “Adrian has said very clearly that the decisions he’s made since we changed the mandate, in particular in the last few years, have not been affected by the fact that he had the dual mandate.”
So much for the ‘fade USD strength’ story; instead, it’s the only game in town! While that fits with the soft-landing narrative, we do have one word of caution, and that’s to take month/quarter-end moves with a bit of a grain of salt.
The bank continued to expect prices for dairy to move higher in 2024 but that weakening demand from China for dairy as well as other commodities such as forestry and meat did pose a risk for the economy.
RBNZ latest news
RBNZ latest analysis
AUGUST RBNZ DECISION
Following the August monetary policy meeting, the Reserve Bank of New Zealand (RBNZ) board members decided to leave the official cash rate (OCR) unchanged at 5.50%. The RBNZ policy decision aligned with the market expectations of a no-rate change this month.
May RBNZ DECISION
At the May policy meeting, the Reserve Bank of New Zealand (RBNZ) board members decided to increase the official cash rate (OCR) by 25 basis points (bps) from 5.25% to 5.50%, as widely expected.
February RBNZ DECISION
The Reserve Bank of New Zealand raised the OCR by 50 bps to 4.75% in February. NZD/USD has rallied to 0.6245 as markets look past the Cyclone Gabrielle-led damage and the prospects of a more hawkish Federal Reserve. Instead, investors are wary of the RBNZ's higher inflation expectations from 3.8% to 4.2% by March 2024.
NOVEMBER RBNZ DECISION
The Reserve Bank of New Zealand has forecasted a higher peak cash rate and has hiked rates by 75 basis points as expected. The knee-jerk was volatile in forex seeing the Kiwi rally, drop and then rally again as the statements were digested.
What is the RBNZ
The Reserve Bank of New Zealand is New Zealand's central bank. Like most central banks, the Reserve Bank is primarily a policy organisation, and exists to do three main things: formulate and implement monetary policy to maintain price stability, promote the maintenance of a sound and efficient financial system and meet the currency needs of the public.
Who is RBNZ's president?
Adrian Orr is the Governor of the Reserve Bank of New Zealand. He was appointed in March 2018. He is New Zealand born and bred, and primarily of Cook Island and Irish descent. Adrian graduated from the University of Waikato in 1983 with a Bachelor of Social Sciences, majoring in Economics and Geography. He also holds a Master’s Degree in Development Economics (Distinction) from the University of Leicester, England, graduating in 1985. Adrian has also served as Chair of the International Forum of Sovereign Wealth Funds, and Chair of the Pacific Pension and Investment Institute.
Adrian official RBNZ profile
Interest rates latest news
The World Interest Rates Table
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.