The Reserve Bank of New Zealand has presented its Monetary Policy Statement (MPS) today which was expected to be all about the RBNZ unveiling a Funding for Lending Programme (FLP). The FLP is a scheme that will be offering funds directly to the banks at a rate near OCR. Markets are especially looking for comments about the likelihood of a negative OCR.
Commenting on the prospects of negative interest rates, the RBNZ Governor Adrian Orr said that the Official Cash Rate (OCR) will remains at a record low of 0.25% until next year. Additional quotes “Too early to tell if the possibility of negative rates decreased following the FLP and LVR review.” “Our commitment to keeping OCR unchanged until March stays.”
RBNZ's governor Adrian Orr is crossing the wires saying that they are aware of asset price inflation and are needing to operate with a medium-term focus. Orr states that they are also aware of limits of monetary policy and that the RBNZ has plenty of room left in its QE program. Orr explained that they would prefer to deal with inflation than battle deflation. The kiwi has been testing the 0.66 figure following the statements in a risk-off environment.
A lot of work needs to be done in order to achieve the monetary policy targets, said the Reserve Bank of New Zealand (RBNZ) Assistant Governor Christian Hawkesby on Wednesday. Additional comments: “Looking to use balance sheet more.”
Reserve Bank of New Zealand Christian Hawkesby is the Assistant Governor and General Manager of Economics, Financial Markets and Banking and he says some economic data are surprising on the upside. However, he says that there is still a lot of uncertainty about the economy.
The Reserve Bank of New Zealand holds OCR steady at 0.25%, introducing FLP. RBNZ sees average OCR In 1Q 2021 at 0.25%. The FLP is a scheme that will be offering funds directly to the banks at a rate near OCR.
“The economic activity since August domestically and internationally has been more resilient than earlier assumed,” said the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr while speaking at the post-monetary policy ...
The Reserve Bank of New Zealand (RBNZ) board members decided to leave the Official Cash Rate (OCR) unchanged at a record low of 0.25% for the third straight month in August, as much anticipated.
The Reserve Bank of New Zealand’s (RBNZ) monetary policy decision was accompanied by the minutes of the meeting, which showed that board members will continue to provide additional stimulus as necessary.
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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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
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.