RBNZ Rate Statement
Reserve Bank Of New Zealand Rate Statement
Monetary Policy Statement
Starts Wednesday, October 17, 2018 at 03:35
Updated Monday, September 24, 2018
The Reserve Bank of New Zealand is expected to keep interest rates on hold so today's decision won't be really important. What's more important is the economic outlook by the RBNZ after the beginning of the trade war. Yesterday, the Royal Bank of Australia dismissed worries about the escalating trade war so it remains to be seen whether the RBNZ will do the same thing. Therefore, we will look into the details of the cash rate statement to spot any changes from the previous statement.
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About Reserve Bank Of New Zealand Rate Statement
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.