OCR expected to stay at 1.75%

by Kelly Gregor12 Mar 2018

The Reserve Bank of New Zealand (RBNZ) will give an Official Cash Rate (OCR) update next Thursday, March 22. It’s expected to remain changed 1.75%, where it’s been since February 2017.

The bank published Monetary Policy Statements every quarter, and OCR announcements every six weeks.

During the last OCR update on 8 February, Reserve Bank Governor Grant Spencer said global economic growth continued to improve, while global inflation remained subdued, there were however signs of emerging pressures.

He added that GDP that house inflation had increased over the holiday period, but housing credit growth continued to moderate.

“Annual CPI inflation in December was lower than expected at 1.6% due to weakness in manufactured goods prices. While oil and food prices have recently increased, traded goods inflation is projected to remain subdued through the forecast period.

“Overall, CPI inflation is forecast to trend upwards towards the midpoint of the target range. Longer-term inflation expectations are well anchored at 2%,” he added.

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