Highlights of RBNZ Monetary Policy Statement

13 Nov 2019 10:11 AM


RBNZ announced this morning its monetary policy decision to keep rates unchanged at 1.00%. The highlights of the monetary policy statement were as follows:
• Although inflation has risen by 1.5%, it is still below the middle of the target range from 1% to 3%.
• Long-term inflation expectations are stable at 2%.
• The labor market sector is strong.
• Employment is close to sustainable levels.
The New Zealand economy has been experiencing a significant slowdown since 2016.
• We expect the situation to continue for the remainder of the year.
• Business investment and personal spending are slowing.
• Interest rate cuts more than once in 2019 will help mobilize growth momentum.
• Interest rate cut pressures the NZD against other currencies.
• Declining currency has made exports more competitive in global markets and helped to increase demand.
• We expect that the rate cut will encourage government spending.
• Domestic demand has been affected by slowing global growth.
• During the past three months, the world economy has suffered a marked slowdown.
• Central banks took the decision to cut interest rates to move the wheel of growth.
• Interest rate cuts are necessary to support economic growth.

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