RBNZ reveals OCR decision

There were no surprises when the Reserve Bank of New Zealand (RBNZ) updated the Official Cash Rate (OCR) today.

The rate, which is supposed to meet the dual mandate of contributing to public welfare by supporting maximum sustainable employment while also maintaining price stability over the medium term, was sustained at 0.25% – the level it has stood at since March, 2020.

The decision largely matched economists’ expectations. TMM’s preview survey revealed that all economists interviewed expected the RBNZ to keep the OCR at its current level.

ANZ chief economist Sharon Zollner, meanwhile, suggested “tightening is far off”. She told TMM that ANZ economists forecast the first rate hike in August 2022, with steady increases up to 1.25% by the end of 2023.

NZ Adviser will bring you all the reaction to the RBNZ decision over the coming days.