RBNZ keeps OCR unchanged at 2%: further easing will be required

Felipe Erazo FXStreet

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

Author

Felipe Erazo

FXStreet

Born in Colombia, Felipe Erazo is the American Session Manager at FXStreet. He has been studying journalism with a degree in social communication at the Universidad de Chile.

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