The Reserve Bank of New Zealand have left the cash rate unchanged, as widely expected
Leaves the cash rate 2.25%
From their statement (Quick headlines via Reuters )
- Further fall in NZD appropriate
- Says further easing may be needed
- Outlook for global economy still uncertain
- Monetary policy to remain accommodative
- Says watching data closely
- Further fall in NZ dollar appropriate
- Says economy to be supported by migration, tourism, construction
- Headline inflation remains low
- Many uncertainties around the outlook
- Auckland house prices may be picking up
- Main domestic risks relate to weakness in dairy sector, pressure in housing market
- Dairy sector faces difficult challenges
- Says decline in inflation expectations, continued high net immigration also risks
- Risks include declining inflation expectations
- Housing market pressures building in some regions outside Auckland
- Lower NZD is desirable
- Says lower NZ dollar desirable to boost inflation
Full text of the statement is here: Official Cash Rate unchanged at 2.25 percent
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A set of dovish comments there, and specific mentions for a desire a lower currency ... so the NZD pops ... :-D
Going into this announcement market expectations were for an 'on hold' decision and for a cut to come in June. There isn't much in the statement accompanying the decision to change the June view at this stage.
Note, the bank says they'll be monitoring incoming data. That's not a bad idea for anyone operating in a dynamic environment.
