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XE Data Update - RBNZ Official Cash Rate Decision - NZD Lower

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. The key points in the RBNZ statement are:

  • RBNZ keeps the OCR at 0.25%
  • See the OCR at 0.25% in September 2020
  • To significantly increase Large Scale Asset Purchase (LSAP) of Government Bonds to NZD$60 billion (up from $30 billion)
  • Prepared to use additional monetary policy tools if and when needed including reducing the OCR further
  • The Monetary Policy Committee is committed to achieving its employment and inflation objectives
  • Monetary Policy will continue to provide significant support through keeping interest rates low for the foreseeable future
  • Expects to see retail interest rates fall further
  • Forecasts OCR at 0.25% in March 2021
  • Forecasts June quarter GDP at -21.8%
  • Other tools the RBNZ mentioned in their minutes include further OCR reductions; a term lending facility; and adding other asset classes, such as foreign assets, to the LSAP programme
  • Banking system is sound and markets functioning satisfactory
  • Committee agreed that risks are to the downside of the baseline scenario
  • Agreed that a ‘least regrets’ monetary policy approach is needed, delivering stimulus sooner rather than later
  • More stimulus is needed to support medium-term recovery in economic activity, employment and inflation

The NZD is lower in immediate response.

RBNZ Governor Adrian Orr will be condusting a press conference at 3pm.

The next OCR decision will be held on the 24th June 2020.

Below is link to the RBNZ press release:

Current indicative levels are


NZD-USD 0.6025 / 0.6050

NZD-AUD 0.9320 / 0.945

NZD-EUR 0.5545 / 0.5570

NZD-GBP 0.4905 / 0.4930

NZD-JPY 64.55 / 64.80

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