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New Zealand Interest Rates Remained at 1.75%

三月, 24 2017

$Economic news$

During the recent monetary policy meeting of the central bank of New Zealand, they concluded to keep on hold its Official Cash Rate (OCR) at 1.75% and the resolution met the expectations in general. Moreover, the last interest rate reduction was during the November 2016 meeting from 2.00% lowered down to 1.75%.

According to the statement of Reserve Bank of New Zealand (RBNZ), the policy will be adaptive for a quite a period of time. Uncertainties were expected to prevail, relative to global outlook hence, the policy would make some adjustments respectively.

The quarterly growth for December came in with negative results, however, the bank assumed that this weaker data is caused by temporary factor while positive growth forecasts will continue.

Generally speaking, the RBNZ feels comfortable regarding the inflation as well as the conversion rates profile. These factors are the reasons why the bank pronounced a neutral policy for the meantime as it looks forward in the developments on both domestic and international.

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