RBNZ Interest Rate Decision - OCR remains at 1.75%

Thursday, 8 February 2018, 9:50 am
Press Release: HiFX

RBNZ Interest Rate Decision - 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%
• Monetary policy will remain accommodative for a considerable period
• Numerous uncertainties remain and monetary policy may need to adjust accordingly
• Longer-term inflation expectations remain well anchored at around 2%
• Future headline inflation expected to tend upwards towards the midpoint of the target band
• House prices inflation has increased somewhat but housing credit growth continues to moderate
• Has revised down net impact of new government policies in near term
• Kiwibuild program contributes to residential investment growth from 2019
• Labour market conditions continue to tighten
• GDP growth in second half is expected to strengthen
• NZD$ has firmed, assume it will ease in the period ahead
• Domestic economic growth is projected to strengthen
• Labour market conditions continue to tighten
• Impact of government policies has been revised down in the near term
• Economic growth profile weaker in near term, stronger in medium term
• Global Equity Markets Strong, But Notes Recent Volatility
• Signs Of Emerging Global Inflation Pressures
The NZD is sharply lower in immediate response.

A media conference will be held at 10am – this is the webcast link:

https://www.rbnz.govt.nz/research-and-publications/webcasts

The next OCR decision, but no Monetary Policy Statement, will be held on 22nd March 2018.

Below is link to the RBNZ press statement:

https://www.rbnz.govt.nz/news/2018/02/official-cash-rate-unchanged-at-1-75-percent

Current indicative levels are:

NZD-USD 0.7215 / 0.7240
NZD-AUD 0.9215 / 0.9240
NZD-EUR 0.5875 / 0.5900
NZD-GBP 0.5195 / 0.5220
NZD-JPY 79.10 / 79.35

ends

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