HiFX Data Update - RBNZ Official Cash Rate Decision

HiFX Data Update - RBNZ Official Cash Rate Decision - rates remain on hold - NZD smashed

The RBNZ have maintained the Official Cash Rate (OCR) at 1.75%.

The key points in the RBNZ statement are:
Reserve Bank of NZ maintains the Official Cash Rate at 1.75%
Monetary policy will remain accommodative for considerable period
Developments since Feb on balance considered to be neutral for monetary policy stance
Numerous uncertainties remain and policy may need to adjust accordingly
House price inflation has moderated further, moderation projected to continue
Headline inflation to reach midpoint of target band over medium term
Long-term inflation expectations remain anchored at around 2%
Recent increase in headline inflation temporary
Growth outlook remains positive
Numerous policy uncertainties remain
Policy may need to adjust accordingly
The NZD was smashed lower in response to the RBNZ rate decision and MPS - the NZDUSD plunged 100 points from top to bottom.

The RBNZ will hold a press conference at 10:00am to further explanation their decision and thinking behind it.

The next OCR decision will be held on 22nd June 2017. There is no Monetary Policy Statement at this meeting.

Below is link to the full RBNZ press statement:

http://www.rbnz.govt.nz/monetary-policy/monetary-policy-statement

Current indicative levels are:

NZD-USD 0.6840 / 0.6865
NZD-AUD 0.9305 / 0.9330
NZD-EUR 0.6290 / 0.6315
NZD-GBP 0.5280 / 0.5305
NZD-JPY 78.15 / 78.40

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