Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

RBNZ May Monetary Policy Statement Instant View

Data Flash (New Zealand) NZ:


As widely expected, the RBNZ left the cash rate unchanged at 5.75%.

The Bank referred to buoyant domestic trading conditions and corresponding upside inflation risks, but also noted that there was a risk of a further deterioration in world economic conditions.

While the RBNZ's central forecast track assumes a re-tightening in the first quarter of next year, the Bank said that a weaker-than-expected global picture and its subsequent impact on NZ could trigger a further series of rate cuts. The alternative scenario printed in the MPS projects the OCR reaching 5.0% during the first half of next year.

In our view, both the RBNZ's central scenario (US recovers, RBNZ re-tightens early) and the alternative scenario (US weak, Fed continues to ease aggressively, RBNZ follows) imply a widening OCR/Fed Funds differential.

The market viewed the statement as relatively hawkish, with both the bill futures and bond market weaker.

Ulf Schoefisch, Chief Economist


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>