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


XE Data Update - RBNZ slashes the OCR by 0.50% to 1.00%

XE Data Update - RBNZ slashes the OCR by 0.50% to 1.00% - NZD lower

The RBNZ have cut the Official Cash Rate (OCR) by 0.50% to 1.00% - this surprised the market who were only expecting a 0.25% cut. The last time the RBNZ cut by 0.50% was in March 2011.

The key points in the RBNZ statement and full monetary policy statement are:
The committee agreed larger initial monetary stimulus would best ensure meeting inflation and employment objectives.

The lower OCR path reflected the economic projections and the balance of risks discussed.

Members noted that estimates of the neutral level of interest rates have continued to decline

Committee noted that low business confidence had dampened business investment in 2018 and had remained weak in mid-2019

Members noted that heightened global uncertainty was reducing investment and suppressing trading-partner growth

Members noted this highlighted the risk of a larger or more prolonged slowdown in global economic growth.

Committee agreed that the balance of risks to achieving inflation and employment objectives tilted to downside

The NZD plunged lower in immediate response.

The RBNZ press conference will take held at 3pm.

The next OCR decision will be held on the 25th September.

Current indicative levels are:

NZD-USD 0.6435 / 0.6460
NZD-AUD 0.9530 / 0.9555
NZD-EUR 0.5735 / 0.5760
NZD-GBP 0.5275 / 0.5300
NZD-JPY 68.25 / 69.50


© Scoop Media

Business Headlines | Sci-Tech Headlines


Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>


Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>


Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>


Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>


Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>