Reserve Bank of New Zealand June 2019 monetary policy decision

Cash rate stays at 1.5%, as was unanimously expected

Bank comments (bolding mine):

  • weaker global economic outlook
  • risk of ongoing subdued domestic growth
  • a lower OCR may be needed over time

Domestic growth has slowed over the past year

  • construction activity strengthened in the March 2019 quarter
  • growth in the services sector continued to slow
  • Softer house prices and subdued business sentiment continue to dampen domestic spending

global economic outlook has weakened

  • downside risks related to trade activity have intensified

Given the downside risks around the employment and inflation outlook, a lower OCR may be needed.

more to come

text of release: Official Cash Rate unchanged at 1.5 percent