this post was submitted on 12 Jul 2023
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Reserve Bank leaves official cash rate at 5.5% (www.rnz.co.nz)
submitted 1 year ago by [email protected] to c/[email protected]
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"The Reserve Bank stuck to the script and left the official cash rate unchanged at 5.5 percent, confirming an end to its 21-month tightening campaign"...

"It said inflation, currently at an annual rate of 6.7 percent, was expected to keep falling as would inflation expectations, with a slowing global economy, an easing in supply chain disruptions, cooler labour and housing markets"...

"It estimated that inflation would be back in the target band in the second half of 2024"...

"We don't expect OCR cuts until May next year, give or take"

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[–] [email protected] 2 points 1 year ago (1 children)

I think there was some way RBNZ could influence interest rates prior to the OCR... perhaps it was more direct than it is now? I don't know the details, but I'm pretty sure there was something (and can't find any info about it).

[–] [email protected] 4 points 1 year ago (1 children)

Fun fact. Modern inflation rate targeting monetary policy was invented in NZ by Don Brash (and others). It has since become economic gospel for most western banking systems. https://www.nytimes.com/2014/12/21/upshot/of-kiwis-and-currencies-how-a-2-inflation-target-became-global-economic-gospel.html

[–] [email protected] 2 points 1 year ago

That's a really interesting read, thanks for sharing!