RBNZ keeps rates on-hold, no signals on its next moves

The Reserve Bank of New Zealand (RBNZ) matched broad consensus by leaving the official cash rate (OCR) unchanged at 1.75%. The New Zealand central bank expects to keep the OCR at this level through 2019 and 2020 with no strong signals on its next moves.

  • Employment is near its maximum sustainable level. 
  • Trading-partner growth is expected to further moderate in 2019 and global commodity prices have already softened, reducing the tailwind that New Zealand economic activity has benefited from. 
  • The risk of a sharper downturn in trading-partner growth has also heightened over recent months.
  • Despite the weaker global impetus, we expect low interest rates and government spending to support a pick-up in New Zealand’s GDP growth over 2019.
  • Keep the OCR at an expansionary level for a considerable period to contribute to maximising sustainable employment, and maintaining low and stable inflation.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.