Minutes - Highlights: Committee reached decision to cut by consensus. Committee reached a consensus that a lower path for the OCR over the projection period was appropriate. Members agreed given weaker domestic spending, and projected growth and employment headwinds, there was a need for further monetary stimulus.
At its May monetary policy meeting on Wednesday, New Zealand’s central bank, the Reserve Bank of New Zealand (RBNZ) cut its Official Cash Rate (OCR) to fresh historic lows of 1.50% vs. 1.75% previous, as the economy cools and inflation falls further below target.
The RBNZ interest rate decision is announced by the Reserve Bank of New Zealand. If the RBNZ is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the NZD. The RBNZ rate statement contains the explanations of their decision on interest rates and commentary about the economic conditions that influenced their decision.
The RBNZ has left the Official Cash Rate (OCR) at 1.75% and says expects to keep the OCR at this level through 2019 and into 2020. RBNZ says there are both upside and downside risks to our growth and inflation projections.
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.
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Grant Spencer is Acting Governor for the Bank. His tenure in leading the Bank became effective on 27 September 2017 and will end on 26 March 2018. His tenure covers the post-election period while the next Government makes a permanent appointment. Previously Grant held the position of Deputy Governor and Head of Financial Stability from April 2007 until September 2017. Grant's previous positions include: Assistant Governor and Head of Economics at the Reserve Bank; senior treasury and strategy positions at ANZ Banking Group; and Alternate Executive Director at the International Monetary Fund. He currently serves as chair of the OECD's Committee on Financial Markets.
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.