This no change decision was widely expected from the Reserve Bank of New Zealand
- Says a decline in the NZD is needed
- Monetary policy to remain accommodative
- Says further easing will be required
- Says weak global growth and low rates putting upward pressure on nz$
- High NZD makes it difficult to reach inflation target
- Further declines in inflation expectations still a risk
- Domestic growth supported by strong migration, tourism, construction
- Says strong immigration is limiting wages pressure
- Says watching data closely
- Volatility in global markets has increased
- House price inflation remains excessive
- Outlook for global growth, commodity prices remains uncertain
- Annual CPI inflation expected to weaken in sept quarter
- Long term inflation expectations well anchored at 2%
- Says outlook for dairy season remains very uncertain
Some jawboning on the currency and other remarks that are uncontroversial.
NZD has given back some of its overnight gains but is off its post-announcement low:
Here's a 1 minute chart with the immediate post announcement moves in case you are not in front of a chart:
And a 15 minute chart:
Don't like 1 minute or 15 minute charts? No problemo - for a DIY option check out our live charts here!
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The next Reserve Bank of New Zealand OCR announcement is on November 10. There will be a Monetary Policy Statement with it, followed by a media conference.
ASB have already responded to today's announcement
- They expect a 25bp cut at the November announcement
- See a high risk of another 25bp cut in 2017
- Add that NZ growth is a positive but inflation risk remains skewed to the downside ... and that a high NZD is not helping in this
