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

 

RBNZ Deputy Governor Bascand raises possibility of rate cut

The Reserve Bank of New Zealand Deputy Governor Geoff Bascand has spoken with reporters on the RBNZ’s proposals to increase bank capital requirements.

His key points were:
Proposals could raise borrowing costs and ultimately lead to tighter monetary conditions
This may require a cut to the OCR (official cash rate)
“If we were worried…and thinking we may have an economy that’s undershooting inflation or undershooting maximum sustainable employment, we’d offset it with an OCR change”
The RBNZ is proposing that banks be require to raise high-quality Tier-1 capital to 16% of overall risk-weighed assets – almost double the current regulatory requirement.

Banks have said the consequences of the proposals could lead to slower credit growth, higher borrowing costs and weaker economic growth.

The OCR currently stands at 1.75%

NZD is lower across the board in response.

Current indicative levels are:

NZD-USD 0.6765 / 0.6790
NZD-AUD 0.9540 / 0.9565
NZD-EUR 0.5965 / 0.5990
NZD-GBP 0.5185 / 0.5210
NZD-JPY 74.90 / 75.15



© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Tax Bill Passes, Drops: “An End To Unnecessary Secondary Tax”

“The changes mean Inland Revenue will more closely monitor the tax paid by wage and salary earners through the year. If it appears the worker is being over taxed, Inland Revenue will suggest a more suitable PAYE tax code tailored to that worker.” More>>

ALSO:

Ethiopian Airline Crash: Boeing 737 Max Aircraft Operations Temporarily Suspended

New Zealand’s Civil Aviation Authority has suspended the operation of Boeing 737 MAX aircraft to or from New Zealand. Currently this affects only one operator, Fiji Airways. There are no other airlines that fly this aircraft type to New Zealand. More>>

ALSO:

Sorting Out DNA: Crime-Busting Software Wins Top Science Prize

Software developed in New Zealand that has contributed to identifying suspects in tens of thousands of criminal cases around the world has won the 2018 Prime Minister’s $500,000 Science Prize. More>>

ALSO:

In The High Court: IRD Wins Tax Avoidance Case

Inland Revenue has won a High Court case against Eric Watson’s Cullen Group over a nearly $52 million tax debt. More>>

ALSO:

Insurers Withdraw From Market: Plea For EQC Rethink

A consumer watchdog wants the government to rethink the Earthquake Commission (EQC) as more people are pushed out of getting property and contents insurance. More>>

ALSO:

Women's Day: New Zealand Rated Third Best In OECD For Working Women

New Zealand has been rated among the top countries in the world for working women. The Women in Work Index rated New Zealand third in the OECD and it was the only country outside Europe to make the top 10. More>>

ALSO: