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  • Official Cash Rate unchanged at 1.75 percent

    From rbnz.govt.nz

    Tena koutou katoa, welcome all. The Official Cash Rate (OCR) remains at 1.75 percent. We expect to keep the OCR at this level through 2019 and into 2020. There are both upside and downside risks to our growth and inflation projections. As always, the timing and direction of any future OCR move remains data dependent. The pick-up in GDP growth in the June quarter was partly due to temporary factors, and business surveys continue to suggest growth will be soft in the near term. Employment is around its maximum sustainable level. However, core consumer price inflation remains below our 2 percent target mid-point, ... (full story)

OK so working this through. Expectation for a move in OCR is remote for at least 18 months while there is expectation of 2 or 3 increases in the Fed Funds rate. NZD has risen strongly recently. Add RBNZ Governor Orr's line "we are not taking rate cuts off of the table." and maybe it is time for Kiwi to ease up a little from it's strong rally?
Concur; given current fiscal constraints in play, the amount of govt spending, increase in general living costs (WTF petrol) and the relative strength of the NZD; I was thinking that maybe a temporary drop of the OCR to 1.50% would have been in order - must be one hell of a larger picture in play here....
In the tempest of a fast moving market; not everyone is happy.
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