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

 

RBNZ Raises OCR To 5.00% - Hawkish Statement

Data Flash (New Zealand)

OCR increaesed to by 25 bps to 5.0%.

Further rates hikes foreshadowed for this year to 6.25% in November. RBNZ appears to still have upside bias, based on strong domestic demand and global recovery. Significant concern about pace of migration in particular. Inflation projected to stay above 1.5% mid-point of target range over next 3 years.

While we do not disagree with the medium-term OCR profile projected by the RBNZ, the early move today has come as a surprise. There is the risk of a negative reaction by international investors, particularly given the Fed statement this morning that reflected no more than a neutral bias. The RBNZ's stance may be interpreted as unnecessarily aggressive.

Further 25 bps tightening steps should be expected for the 17 April and 15 May RBNZ reviews.

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>>