Reserve Bank of New Zealand Cash Rate
Event Date: Wednesday, May 24, 2023
Event Time: 02:00 CET
RBN to Raise Rates to 5.50%
Updated Monday, May 22, 2023
The Reserve Bank of New Zealand (RBNZ) has been keeping interest rates on hold at 1.75% for many months but last month they delivered a surprise rate cut to 1.50% which caught the market by surprise. The RBA also cut interest rates in June and they did so again in the following meeting. Besides that, they tied their next rate move on the FED. The FED cut interest rates in the July meeting, and the RBA followed suit since they followed the FED. The RBNZ might do the same thing as well, although no move is expected in this meeting. The RBNZ cut interest rates again in August from 1.50% to 1.00% and in March they delivered an even larger cut of 75 bps, bringing them to 0.25%. But, the coronavirus was held out of New Zealand largely, so there's no reason for the RBNZ to cut rates again now. Although, there have been some strong measures in Auckland, so let's see what the RBNZ has to say about it, since the RBA pledged to remain dovish until at least 2024. But, expectations are for another increase to 0.50% in this week's meeting. Please follow us for live coverage of this event by experienced analysts.
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About Reserve Bank of New Zealand Cash Rate
The Reserve Bank of New Zealand (RBNZ) discloses its monetary policy decisions on a 6-week period, February through December. Any adjustments made to the cash rate, also known as the overnight money market interest rate, have the potential to impact the New Zealand dollar (NZD) significantly.The decision to either raise or lower the cash rate is crafted by the RBNZ’s Reserve Bank Board. After each meeting, an announcement is made to the public regarding any changes to the cash rate. The new lending rates to go into effect the next day.Short-term cash rates are extremely important to valuations of the NZD. Rising rates are viewed as bullish for the NZD, while falling rates are bearish.
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