RBNZ Official Cash Rate is cut by 0.25% to 1.75%

Thursday, 10 November 2016, 10:09 am
Press Release: HiFX

RBNZ Official Cash Rate is cut by 0.25% to 1.75%

The RBNZ have cut the Official Cash Rate (OCR) by 0.25% to a new record low of 1.75%. This was widely expected, however most attention is being paid to the accompanying statement.

The key points in the RBNZ statement are:
Reserve Bank of NZ cuts Official Cash Rate target 0.25% to 1.75%
Monetary policy will continue to be accommodative
Sees NZD TWI (trade weighted Index) around 75.1% in Dec 2017 (previously 74.4%) – it currently stands at 79.16.
Sees annual CPI 1.7 pct by Dec 2017 (previously +1.6%)
Decline in the exchange rate is needed
NZD is higher than sustainable
Projections suggest cut enough to support growth, CPI
Numerous uncertainties remain
International outlook uncertain
Policy may need to adjust to international uncertainty
Inflation expected to rise on rate cuts
House price inflation remains excessive
Auckland house prices has softened, but unclear if move will be sustained
Uncertainty around future dairy prices
Global political uncertainty high
Global market volatility elevated
The NZD jumped higher in immediate response.

The next OCR decision will be held on 9th February 2017.

Below is link to the full RBNZ statement:

http://www.rbnz.govt.nz/news/2016/11/official-cash-rate-reduced-to-1-75-percent

The RBNZ holds a press conference at 10am, followed by Governor Wheeler testimony before the Finance & Expenditure Select Committee at 1:10pm.

Current indicative levels are:

NZD-USD 0.7320 / 0.7345
NZD-AUD 0.9565 / 0.9590
NZD-EUR 0.6690 / 0.6715
NZD-GBP 0.5885 / 0.5910
NZD-JPY 77.50 / 77.75

ends

© Scoop Media

HiFX

International Payments Expertly Done

HiFX is one of the largest foreign exchange and international payment specialists in the world, managing over $30 billion on behalf of over 100,000 clients worldwide every year.

Large enough to undertake the biggest transactions, yet small enough to care about each and every one – send and receive overseas payments and manage your account anytime, anywhere. HiFX gives you the flexibility you need to transfer money quickly and easily via a secure online platform 24 hours a day, seven days a week - making moving money as easy as 1,2,3.

HiFX Ltd ABN 54 106 779 953/ AFSL No 240914

Contact HiFX

• Website - www.hifx.co.nz
• About - HiFX International Payments
• Link - Live Rates (Interbank Exchange Rates)
• Marketwatch - Latest Market briefings
• Register - Personal Account Setup
• Register - Business Account Setup
• Linkedin
• Facebook