RBNZ Rate Statement
Reserve Bank Of New Zealand Press Conference
RBNZ Gov Orr to Acknowledge Decent Economic Data
Starts Friday, January 18, 2019 at 20:15
Updated Monday, November 26, 2018
We have seen some decent economic numbers from New Zealand recently. Inflation posted a nice jump in Q3 by 0.9% against 0.7% expected. Employment change increased by 1.1% against 0.5% expected and the number from Q2 was revised higher as well. The unemployment rate declined to 3.9% against from 4.4% in the previous quarter. Although the trade deficit has increased during this time, the economic figures have leaned heavily on the positive side. The RBNZ Governor Orr should acknowledge these numbers. If he does, then we expect some upside price action in NZD in the following session. Please follow us for live coverage of this event by experienced analysts and the impact it might have on the currency.
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About Reserve Bank Of New Zealand Press Conference
The Official Cash Rate (OCR) is the price of borrowing money, or official interest rate, in New Zealand. It is set by the Reserve Bank of New Zealand (RBNZ) and revisited eight times annually. The OCR is the mechanism by which the RBNZ controls inflationary pressures. Target inflation is to remain between 1% and 3% for the intermediate-term. The OCR is adjusted periodically in adherence to a 2% goal of stated inflation.The RBNZ Press Conference is the official release of the OCR to the public. A hike in rates reflects a desire by the RBNZ to limit inflationary pressure and is a bullish influence on the New Zealand dollar (NZD). Holding the OCR steady, or cutting rates, is a signal of lagging inflation and stagnant economic growth. These actions are typically deemed as bearish against the NZD.The RBNZ Interest Rate Decision is a primary driver of participation for the NZD. Upon its release in the RBNZ Press Conference, pricing volatility increases substantially.