RBNZ leaves interest rate unchanged at 1.75%, inflation expected to remain below 2%


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.

Key highlights

RBNZ sees cash rate at 1.8% in Sept 2018.

Cash rate not expected to lift until Sept 2019 to 1.9%.

RBNZ expects CPI at 1.6% in June 2019.

Low food, low import prices, and low wage growth are all dragging inflation down.

CPI expected to remain below 2%.

RBNZ expects to keep OCR at 'expansionary levels' for a 'considerable' amount of time.

RBNZ's next move could either be up or down on interest rates.

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