Thursday, September 11, 2014

RBNZ monetary policy statement

The Reserve Bank of New Zealand left the Official Cash Rate (OCR) unchanged at 3.5%.

"The exchange rate has yet to adjust materially to the lower commodity prices. Its current level remains unjustified and unsustainable. We expect a further significant depreciation, which should be reinforced as monetary policy in the US begins to normalise." A key indicator in the statement, the NZD should weaken against other currencies especially depreciating against the USD on a medium to long term basis. 


The summary of the statement can be found here and the complete one if necessary.  

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