RBNZ Monetary Policy statement

RBNZ Monetary Policy statement

The RBNZ left the Official Cash Rate (OCR) unchanged at 2.25%.

Key Points

The outlook for global growth has deteriorated over recent months due to weaker growth in China and other emerging markets

Domestically, the economy is being supported by strong inward migration, construction activity, tourism, and accommodative monetary policy

Monetary conditions are extremely accommodative internationally

Financial market volatility has eased in recent weeks

There are many uncertainties around the outlook for global growth particularly around China

Headline inflation remains low, mostly due to low fuel and other import prices

Annual core inflation remains within the target range
We expect inflation to strengthen as the effects of low oil prices drop out and as capacity pressures gradually build. Monetary policy will continue to be accommodative. Further policy easing may be required to ensure that future average inflation settles near the middle of the target range. We will continue to watch closely the emerging flow of economic data.

ends

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