RBNZ Retained Rate at 1.75% Level
As expected, the RBNZ retained its official cash rate (OCR) at 1.75%. The central bank expects more significant changes in interest rates by 2020. Analysts suggest that monetary policy will remain unchanged for the remainder of 2018.
The RBNZ also stated that they will continue to pursue a soft monetary policy. The weakening of the New Zealand dollar, according to the regulator, will help accelerate inflation in New Zealand. Annual inflation in the country in September accelerated to 1.9%, approaching the RBNZ target level, although the core inflation was somewhat slower. The RBNZ expects that inflation in the medium term will remain near the middle of the target range of 1% -3%.