HiFX Data Update: RBNZ OCR remains at 1.75%
The RBNZ have maintained the Official Cash Rate (OCR) at 1.75%. This was widely expected.
The key points in the RBNZ statement
and full monetary policy statement are:
Reserve Bank of NZ Keeps Cash Rate Unchanged at 1.75%
Keeping Official Cash Rate (OCR) at current level is best contribution to maximising sustainable employment and low and stable inflation
Expects to keep the OCR at this expansionary level for a considerable period of time
Positioned to manage rates up or down
CPI inflation is likely to
increase in near term due to higher fuel prices
Beyond that, inflation expected to gradually rise to 2% target, resulting from capacity pressures
Weaker GDP implies
marginally more spare capacity in economy than we
Spending, investment by both households and government likely to support growth
Government's projected spending impulse is slightly lower and later than anticipated
Global inflationary pressure is expected to be
higher but remain modest
Global economic growth likely to support demand for NZ products and services
Global growth, inflationary outlook have been tempered slightly by trade tensions in some major economies
in some emerging market economies continues
The NZD dipped slightly in immediate response, but has since pushed a little higher.
The NZD was not mentioned in this release, although the RBNZ did state in recent days that the NZD at elevated levels.
The next OCR decision, full Monetary Policy Statement and press conference will be held on 9th August 2018.
Below is link to the full RBNZ press
Current indicative levels are:
NZD-USD 0.6795 /
NZD-AUD 0.9250 / 0.9275
NZD-EUR 0.5875 / 0.5900
NZD-GBP 0.5175 / 0.5200
NZD-JPY 74.90 / 75.15
There is no other NZ data scheduled this week. US GDP figures hit the tapes overnight.