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

 


OCR increased to 5.75 per cent

The Reserve Bank of New Zealand has just made the following announcement.

OCR increased to 5.75 per cent

The Reserve Bank of New Zealand today increased the Official Cash Rate from 5.5 per cent to 5.75 per cent, but also signaled that further increases were now rather less likely than was indicated in the Reserve Bank's May Monetary Policy Statement.

Reserve Bank Acting Governor Rod Carr commented: "Adjusting interest rates so that they no longer actively encourage accelerated spending makes sense, given that the momentum of the New Zealand economy seems at least as strong as anticipated in May. Retail sales are at near record growth rates, helped along by very robust immigration flows, a strong tourist inflow and export incomes, though they are declining, are still at historically very healthy levels. Given the weakness of the world economy, recent overall growth performance has been outstanding.

"Nonetheless, since May there has been a much sharper rise in the exchange rate than allowed for previously, which has had the effect of tightening monetary conditions. If the exchange rate appreciation is sustained, or goes further, some heat will be taken out of future inflation pressures, reducing the extent to which interest rates may need to rise in the months ahead.

"Working in the same direction, international news from equity markets in particular suggests that the US economic recovery has become more fragile, with implications for the global economy. Furthermore, there are promising signs that New Zealand's inflation will peak in the next two quarters a little lower than earlier expected. Both factors will reduce inflation pressures further out.

"The balance of these factors will be the focus of the Bank's next full review, due with the Monetary Policy Statement on 14 August," Dr Carr concluded.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news