9 Mar 2016
RBNZ cuts rate to 2.25% in unexpected move
The Reserve Bank of New Zealand cut the official cash rate (OCR) by 25 points to 2.25% in an unexpected move.
Headline inflation is expected to move higher over 2016, but take longer to reach the target range, said the Reserve Bank Governor Graeme Wheeler and added monetary policy will continue to be accommodative.
“Further policy easing may be required to ensure that future average inflation settles near the middle of the target range,” read the statement. “We will continue to watch closely the emerging flow of economic data.”
Headline inflation is expected to move higher over 2016, but take longer to reach the target range, said the Reserve Bank Governor Graeme Wheeler and added monetary policy will continue to be accommodative.
“Further policy easing may be required to ensure that future average inflation settles near the middle of the target range,” read the statement. “We will continue to watch closely the emerging flow of economic data.”