RBNZ Rate Statement
Reserve Bank Of New Zealand Press Conference
Will the RBNZ Dial Down Its Tone As the RBA Did Last Week?
Starts Wednesday, February 13, 2019 at 02:00
Updated Tuesday, February 12, 2019
Economic growth has faltered across the globe as the major economies are in a difficult spot apart from the US. The Reserve Bank of Australia Governor Lowe sounded sort of dovish last week, shifting the economic outlook from positive to neutral and the interest rate from slightly hawkish to neutral. He also mentioned rate cuts. That turned the Aussie bearish that day and it pulled the NZD down with it too. The two economies are closely related so the chances are that the RBNZ dials its tone down as well, which would hurt the Kiwi. Please follow us for live coverage of this event by experienced analysts.
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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.