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RBNZ cuts OCR by 0.25% to 3.25% - NZD smashed lower
RBNZ cuts OCR by 0.25% to 3.25% - NZD smashed lower
The RBNZ have cut the Official Cash Rate
(OCR) by 0.25% to 3.25%. The market was evenly divided
between a rate hike and staying pat.
The key points in the RBNZ statement are:
• RBNZ cuts the OCR by 0.25%
to 3.25%
•
• Says rate cut needed given low
inflation
•
• Further easing may be
appropriate
•
• Further moves depend on
data
•
• Regulation changes to ease pressure on
house prices
•
• Weak dairy prices, high fuel
prices weigh on incomes
•
• Sees NZ inflation
back in 1% to 3% target bank by Q1
2016
•
• Little evidence NZ export prices are
about recover
•
• Global dairy prices likely to
remain weak over medium term
•
• Auckland house
prices rapidly increasing, more supply
needed
•
• Tradables inflation will increase
noticeably as fuel prices rise
•
• Decent and
continued fall in NZD will also boost tradables inflation
•
The NZD has been smashed lower in immediate
response. The NZDUSD has plunged 180 points straight away.
The next OCR decision will be held on 30th July.
Below is link to the full RBNZ statement:
http://www.rbnz.govt.nz/news/2015/official-cash-rate-reduced-to-3.25-percent.html
Current indicative levels are:
NZD-USD
0.7040 / 0.7065
NZD-AUD 0.9090 /
0.9115
NZD-EUR 0.6215 / 0.6240
NZD-GBP
0.4535 / 0.4560
NZD-JPY 86.45 / 86.70
ends
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