The Reserve Bank of New Zealand has raised their official cash rate from 2.0% to 2.5%, a widely expected move today.
Brief highlights from the announcement, RBNZ sees the path it outlined in May as still appropriate:
- The Committee agreed it remains appropriate to continue to tighten monetary conditions
- The Committee agreed to continue to lift the OCR to a level where it is confident consumer price inflation will settle within the target range.
- The Committee is comfortable that the projected path of the OCR outlined in the recent May Monetary Policy Statement remains broadly consistent with achieving its primary inflation and employment objectives - without causing unnecessary instability in output, interest rates and the exchange rate. Once aggregate supply and demand are more in balance, the OCR can then return to a lower, more neutral, level.
Background to this:
- ANZ now forecast the RBNZ will hike 50bps in both July and August (previously 50 then 25)
- Poll shows the consensus for a 50bp interest rate hike from the RBNZ next week
- "Preview": Reserve Bank of New Zealand expected to raise its official cash rate 50bps
- Risk for NZD NZDThe New Zealand Dollar (NZD) is the official currency of New Zealand and th...Read this Term at today's RBNZ meeting is lowering of the OCR peak - Credit Agricole