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by
Charlotte Greenfield and Praveen Menon
The Reserve Bank of New Zealand maintained Thursday its official cash rate (OCR) at a record 1.75% and said rates would stay at that level until 2019 and up to the end of the year. 2020.
"Our growth and inflation forecasts have both upside and downside risks, and as always, the timing and direction of any future OCR move is dependent on the data," said the CEO. Governor Adrian Orr in a statement accompanying the rate decision.
At its last meeting in September, the RBNZ announced that interest rates would remain at the same level until 2020.
The New Zealand dollar initially jumped and then retreated to 0.6775 USD.
The recovery in GDP growth in June is partly due to temporary factors, and business surveys suggest that growth will be moderate in the near term, the bank said. The employment is around its maximum sustainable level. However, core inflation in consumer prices remains below our mid-term target of 2%, which requires a supportive monetary policy.
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"GDP growth is expected to pick up in 2019. Monetary stimulus and population growth underpin household spending and business investment, while public spending on infrastructure and housing also supports domestic demand. New Zealand dollar exchange rate will support export earnings. "
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