Kiwis Faced With Higher For Longer Rates Stuck At 5.5%!

The latest decision from the New Zealand Monetary Policy Committee was released on Wednesday, which was to leave the cash rate at 5.5%. Their key messages were little changed since the February MPS, showing little hurry to change current restrictive settings despite overall CPI inflation expected to fall below 3% this calendar year.

Upside short-term risks to the inflation outlook were largely downplayed, with the RBNZ expecting sub 3% inflation later this year. Despite the economic outlook evolving broadly as expected and inflation on a cooling trend, the RBNZ chose to defer any decisions on when to pivot to an easing bias until more clarity emerges.

Higher for longer…. again!

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Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
Kiwis Faced With Higher For Longer Rates Stuck At 5.5%!
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Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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