New Zealand CPI to decide cash rate @ Forex Factory

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New Zealand CPI to decide cash rate

mortgagerates.co.nz

The Consumer Price Index (CPI) to be released tomorrow will be the most important piece of data between now and next week's OCR review by the Reserve Bank of New Zealand (RBNZ). The RBNZ has kept the official cash rate (OCR) at 2.50% since last April and most economists predict it will remain there until mid-2010. Westpac Weekly Commentary says last quarter's 1.30% increase in the CPI was a huge upside suprise and if Q4 inflation suprises again on the upside tomorrow, the RBNZ will have cause to worry that inflation is not going to moderate to the required degree. "This means monetary policy will have to be tightened more aggressively and perhaps earlier, than currently... Full Story

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Submitted Jan 19, 2010 10:42am

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