RBNZ Monetary Policy Review and official cash rate announcement. OCR remains at 5.5% as basically unanimously expected.
In brief from the Bank's statement:
- The level of interest rates are constraining spending and inflation pressure as anticipated and required.
- The Committee agreed that the OCR will need to remain at a restrictive level for the foreseeable future, to ensure that consumer price inflation returns to the 1 to 3% annual target range, while supporting maximum sustainable employment.
- Global economic growth remains weak and inflation pressures are easing.
- Global inflation rates continue to decline, assisted by the normalisation of international supply chains, and the decline in shipping costs and energy prices.
- The weaker global growth has led to lower export prices for New Zealand's goods.
- In New Zealand, inflation is expected to continue to decline from its peak, and with it measures of inflation expectations. Core inflation is expected to decline as capacity constraints ease.
- While employment is above its maximum sustainable level, there are signs of labour market pressures dissipating and vacancies declining.
- The Committee is confident that with interest rates remaining at a restrictive level for some time, consumer price inflation will return to within its target range of 1 to 3% per annum, while supporting maximum sustainable employment.
