RBNZ Monetary Policy Review and official cash rate announcement. OCR remains at 5.5% as basically unanimously expected.
RBNZ forecasts:
- Official cash rate at 5.54% in December 2023 (vs. prior at 5.5%)
- Official cash rate at 5.57% in September 2024 (vs. prior at 5.43%)
- TWI NZD at around 71.0% in September 2024 (vs. prior at 71.5%)
- Annual CPI 2.7% by September 2024 (vs. prior at 2.7%)
- Official cash rate at 5.5% in December 2024 (vs. prior at 5.3%)
- Official cash rate at 3.38% in September 2026
From the Bank:
- The current level of interest rates is constraining spending and hence inflation pressure, as anticipated and required
- Committee agreed that the OCR needs to stay at restrictive levels for the foreseeable future
- New Zealand economy is evolving broadly as anticipated
- Headline inflation and inflation expectations have declined, but measures of core inflation remain too high
- In the near term, there is a risk that activity and inflation measures do not slow as much as expected
- 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
Still to come is RBNZ Governor Orr's news conference at 0300 GMT (11pm US Eastern time)
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Background to this is here:
- Reserve Bank of New Zealand 'shadow board' monetary policy preview - suggests on hold
- Reserve Bank of New Zealand meet Wednesday - on hold expected - preview
I'd give y'all a link to the relevant part of the RBNZ website but its down.
Unless that is the Statement? ;-)
