Reserve Bank of New Zealand monetary policy decision

  • Further easing may be appropriate
  • Says NZD remains overvalued, should fall further
  • Rate cut needed given low inflation
  • Further rate moves will depend on data
  • Says regulation changes to ease pressure on house prices
  • RBNZ sees annual CPI 0.7 pct end 2015 (pvs 0.4 pct); 2.1 pct at end 2016 (pvs 1.7 pct)
  • Sees GDP yr to March'16 +3.2 pct (pvs 3.5 pct); +3.1 pct yr to march'17 (pvs 3.3 pct)
  • Sees risk that inflation return to midpoint may be further delayed
  • Says expects weakening in demand
  • NZ dollar remains overvalued, further significant adjustment justified
  • Weak dairy prices, high petrol to slow incomes, demand
  • Weaker export prices require more stimulatory policy

Quick summary headlines via Reuters

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Still to come:

  • RBNZ Governor Wheeler will hold a press conference at 2105GMT
  • He will then appear in front of a parliamentary committee at 0110GMT