RBNZ leaves monetary policy settings unchanged, Kiwi drops
At its monetary policy meeting held on Wednesday, June 24, the Reserve Bank of New Zealand (RBNZ) left the Official Cash Rate (OCR) unchanged at a record low of 0.25% for the second straight month, as widely expected.
The RBNZ kept its quantitative easing (QE) programme size unchanged at around NZD60 billion.
Additional takeaways
Balance of economic risks still to downside.
Committee continues to prepare for additional monetary policy tools.
Will review large scale asset purchase quantum at regular intervals.
Rising NZ$ has put further pressure on export earnings.
Monetary policy will continue to provide "significant support".
The negative economic impact on New Zealand is exacerbated by the required international border restrictions.
Committed to meeting our inflation and employment mandate.
About RBNZ Interest Rate Decision
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 rises the interest rates it is positive, or bullish, for the NZD.
NZD/USD reaction
In a slightly delayed reaction to the RBNZ decision, the NZD/USD pair lost 50-pips and dropped to a daily low of 0.6452 before reversing sharply to now trade at 0.6480, still down 0.14% on the day.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
