New Reserve Bank Governor Adrian Orr has given the economy the thumbs up in his first monetary policy statement, and received praise in return for his relaxed and upfront style.
The Reserve Bank has left the official cash rate or OCR at 1.75 percent for the tenth consecutive decision. In a statement this morning the RBNZ said it expected the rate to stay at 1.75 percent for “some time to come”, with the risks of either cuts or increases evenly balanced.
Finance Minister Grant Robertson expects new Reserve Bank Governor Adrian Orr to review the bank's modelling that currently shows unemployment cannot go any lower without generating an inflation surge. Bernard Hickey reports.
The old guard still running the Reserve Bank are in no mood to cut interest rates, but new Governor Adrian Orr will face pressure from the Government and some economists to cut when he arrives in just over six weeks as inflation remains stubbornly at the bottom end of the bank's target band.
The Reserve Bank has held its official cash rate at 1.75 percent as expected, and has forecast it won't need to hike interest rates until 2020 and 2021, and then only slowly, because inflation pressures were moderate.
In this morning's email we dig into the detail of Acting Reserve Bank Governor Grant Spencer's first MPS and press conference and what it might mean for new Finance Minister Grant Robertson's reform plans.
New Finance Minister Grant Robertson faces a tough time convincing existing Reserve Bank staff that they can run the economy hotter to get unemployment below four percent, at least for now.
In today's email we take a deep dive into the Reserve Bank governor's final new conference.
In today's email we dig into yesterday's monetary policy statement and the surprisingly dovish forecasts from Reserve Bank Governor Graeme Wheeler.
The Government hopes higher interest rates will help improve housing affordability in the long run, but it will have to wait a long time for that particular cavalry to gallop over the horizon.