INDEPENDENT NEWS

XE Data Update - RBNZ Official Cash Rate Decision

Published: Wed 24 Jun 2020 02:30 PM
The RBNZ will keep the Official Cash Rate (OCR) at 0.25%.
The key points in the RBNZ statement are:RBNZ keeps the OCR unchanged at 0.25%Maintain the LSAP (large scale asset purchase) at NZD$60 billion.Committee prepared to use additional monetary policy tools /stimulus if necessaryCommittee will review LSAP at regular intervalsBalance of economic risks to the downsideRising NZD$ has put further pressure on export earningsMonetary Policy will continue to provide “significant support”The negative economic impact on New Zealand is exacerbated by the required international border restrictions, as the vast majority of the world battles to contain the pandemic.RBNZ committed to meeting inflation and employment mandateCommittee discussed the pros and cons of expanding the LSAP programme nowAny expansion of policy would need to be driven by the economic outlook and assessment of the effectiveness of the programmeA change in size of the programme would also need to be of sufficient magnitude to make a meaningful differenceStaff are working towards a broader range of monetary policy tools would be deployable in coming monthsTools include a term leaning facility, reductions in the OCR, and foreign asset purchases, as well as reassessing the appropriate quantum of the current LSAPPossible negative outcomes from the global pandemic remain severe and larger than any near-term upside surprisesNot yet clear whether the monetary stimulus delivered to date is sufficient to meet its mandateThe negative economic impact on New Zealand is exacerbated by the required international border restrictions, as the vast majority of the world battles to contain the pandemic.The severe global economic disruption caused by the COVID-19 pandemic is persisting, leading to lower economic activity, employment, and inflation abroad and in New ZealandNew Zealand has contained the spread of COVID-19 locally for now, enabling a relaxation of social restrictions and an earlier resumption of domestic economic activity than assumed in our May Monetary Policy Statement.The Government's intended fiscal stimulus, announced in its May Budget, was also slightly larger than we assumed.These outcomes give cause for some confidence, but significant economic challenges remain.
The NZD is lower in immediate response.
The next OCR decision will be held on the 12th August 2020
.Below is link to the RBNZ press release:
https://www.rbnz.govt.nz/news/2020/06/monetary-policy-easing-to-continue
Current indicative levels are (market pricing is wide):NZD-USD 0.6470 / 0.6495NZD-AUD 0.9310 / 0.9335NZD-EUR 0.5715 / 0.5740NZD-GBP 0.5165 / 0.5190NZD-JPY 68.90 / 69.15

Next in Business, Science, and Tech

Contact delivers for customers, employees and shareholders
By: Contact Energy
OceanaGold Announces Receipt Of WKP Mining Permit
By: OceanaGold
COVID-19 lockdown has widespread effects on labour market
By: Statistics New Zealand
New Research By NZ Post Shows Online Shopping Grew 105% In Alert Level 3
By: New Zealand Post
Westpac NZ Lowers Merchant Fees For Small Businesses
By: Westpac New Zealand
Million Dollar Plus Property Sales Increase 11.7% Nationally, Says REINZ
By: REINZ
Ice-olation For Antarctica New Zealand
By: Antarctica New Zealand
July House Price Index illustrates market resilience
By: QV Valuations
Queenstown Rents Experience Biggest Drop In Seven Years
By: Trade Me Property
The Quiet Earth
By: Auckland University
James Shaw says Kiwibank, not ministers should decide on investors
By: RNZ
Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments
By: Financial Markets Authority
Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off
By: FIRST Union
Stronger Green Voice Needed Next Term To Stop More Mining On Or Under Conservation Land
By: Green Party
Unemployment Figures Don’t Tell The Full Story
By: New Zealand National Party
View as: DESKTOP | MOBILE © Scoop Media