The Reserve Bank of New Zealand (RBNZ) is expected to keep the Official Cash Rate (OCR) unchanged in June based on the outlook for more gradual inflation and GDP increase compared to previous estimates. With quarterly inflation at 1.1% in March quarter, just one-tenth of a percent above the targeted range of 1%-3% and the outlook for inflation muted in the current environment, the RBNZ is expected to voice the data dependency before it indicates any changes to the current setup of the OCR. With new RBNZ Governor Adrian Orr the monetary policy statement was enriched by the new form of solid uncertainty pointing to data dependence with RBNZ saying: ”The direction of our next move is equally balanced, up or down. Only time and events will tell.”
Reserve Bank of New Zealand Decision
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May RBNZ decision
The Reserve Bank of New Zealand (RBNZ) has left the official cash rate unchanged at 1.75% following their latest rate decision. New Zealand's interest rate has remained unchanged since November of 2016. Markets are broadly expecting the RBNZ to remain stuck on rates well into 2019, if not beyond, and the RBNZ's Monetary Policy Statement was a dovish reading for NZ economic figures.
The Reserve Bank of New Zealand (RBNZ) and its Governor, Adrian Orr, held a press conference following their rate statement earlier.
Developments since February have been positive for headline CPI inflation on the whole, with a lower exchange rate and higher oil prices. But the RBNZ is treating this largely as noise: it cares about non-tradable inflation.
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?
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.
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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.