RBNZ on hold, as expected

Reserve Bank of New Zealand March 27 2019 policy decision

Cash rate on hold at 1.75%

• RBNZ says next rate move is likely down
• Balance to inflation risks have shifted to downside
• Employment is near its maximum sustainable level
• core consumer price inflation remains below our 2 percent target mid-point, necessitating continued supportive monetary policy
• global economic outlook has continued to weaken
• Domestic growth slowed in 2018, with softness in the housing market and weak business investment contributing
• We expect ongoing low interest rates, and increased government spending and investment, to support economic growth over 2019
• balance of risks to this outlook has shifted to the downside
• inflation could rise faster if firms pass on cost increases to prices to a greater extent
• We will keep the OCR at an expansionary level for a considerable period to contribute to maximising sustainable employment, and maintaining low and stable inflation.

NZD marked down on the 'next move likely lower' comment from the RBNZ

Full text is here:

The Official Cash Rate (OCR) remains at 1.75 percent.

• Given the weaker global economic outlook and reduced momentum in domestic spending, the more likely direction of our next OCR move is down.

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For background to this:

• HUGE day coming up on March 27! RBNZ monetary policy decision.
• A preview of the RBNZ monetary policy meeting statement coming Wednesday
• A couple of previews of the RBNZ meeting Wednesday (and where for the NZD)
• And: RBNZ expected to leave rates unchanged. What levels to eye.

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The next RBNZ meeting is in May, at which we'll get a full review of the economic outlook and a Monetary Policy Statement