[ad_1]
The Reserve Bank of New Zealand (RBNZ) echoed the broad consensus by leaving the official exchange rate (OCR) unchanged at 1.75%. The New Zealand central bank plans to maintain OCR at this level until 2019 and 2020, with no strong signal for its upcoming moves.
- Employment is close to its maximum sustainable level.
- Growth in the number of trading partners is expected to moderate further in 2019, and world commodity prices have already eased, reducing the downwind that has benefited New Zealand's economic activity.
- The risk of a more pronounced slowdown in the growth of the number of trading partners has also increased in recent months.
- Despite the weaker global momentum, we expect low interest rates and government spending to support a recovery in New Zealand's GDP growth from 2019.
- Maintain the OCR at an expansionist level for a considerable period to help maximize sustainable employment and maintain low and stable inflation.
Source link
