RBNZ Official Cash Rate Decision - NZD Sharply lower

. 1 min read

The RBNZ have maintained the Official Cash Rate (OCR) at 1.75%. This was widely expected, however they said the next move in the OCR is more likely to be a cut than an increase.

The key points in the RBNZ statement and full monetary policy statement are:

  • More likely direction of New Zealand's next OCR (Official Cash Rate) move is down
  • Employment is near its max sustainable level
  • Global economic outlook has continued to weaken
  • Expect low interest rates, increased govt spending and investment to support growth over 2019
  • Weaker global economic outlook and reduced momentum in spending behind shift in rates outlook
  • Expected easier policy in other countries placing upward pressure on NZD

The NZD is sharply lower across the board – all on news the RBNZ’s bias is now towards a rate cut.

The next OCR decision, Monetary Policy Statement and press conference will be held on 8th May 2019.

Below is the link to the RBNZ press release:
https://www.rbnz.govt.nz/news/2019/03/official-cash-rate-unchanged-at-1-75-percent

Current indicative levels are:

NZD-USD            0.6805 / 0.6830
NZD-AUD            0.9570 / 0.9595
NZD-EUR            0.6040 / 0.6065
NZD-GBP            0.5150 / 0.5175
NZD-JPY               75.25 / 75.50

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