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OCR unchanged with dovish spin; KiwiSaver balances swell; labour market holds, NZD drops
The Reserve Bank has left the Official Cash Rate unchanged at 5.5% and says risks to the inflation outlook are now 'more balanced' but there is a limit to the ability to 'tolerate upside inflation surprises'. The NZD fell sharply. The swap rates fell too, immediately following the announcement. In a record shift higher, KiwiSaver assets reached $107.5 bln at the end of December 2023, up +$6.7 bln or +17% in the year. This is the biggest proportional rise since 2021. In contrast to KiwiSaver, life insurance assets have hardly shifted in a year. Life insurers are holding much more cash in their portfolios, in fact they ... (full story)