Recommended NZ | Guide to Money | Gimme: Competitions - Giveaways

NZIER Shadow Board considers an OCR of 1.75% as still appropriate

Contributor:
Fuseworks Media
Fuseworks Media

NZIER’s Monetary Policy Shadow Board recommends the Reserve Bank leaves the Official Cash Rate on hold this Thursday at 1.75 percent. The Shadow Board continues to see a tightening bias as appropriate.

"The New Zealand growth outlook remains solid, with signs underlying inflation pressures are lifting. This suggests little need for further interest rate cuts. But there is no need to rush into rate increases. Downside risks from global developments suggest the Reserve Bank should adopt a wait and see approach, with any tightening likely to be some time away" said Christina Leung, Senior Economist at NZIER.

"The Shadow Board recommends the Reserve Bank continues to leave the OCR at 1.75 percent this Thursday. Inflation is picking up from a low base and with capacity pressures expected to broaden beyond the construction sector, we expect the Reserve Bank to keep the OCR on hold until mid-2018 before embarking on a measured tightening cycle."

The Shadow Board’s average recommended interest rate remained steady at 1.79 percent.

Read the full release attached.

All articles and comments on Voxy.co.nz have been submitted by our community of users. Please notify us through our contact form if you believe an item on this site breaches our community guidelines.

Personal Finance guides from guide2.co.nz

The latest money guides from authoritative New Zealand sources: Investing, KiwiSaver & Saving, Managing Money, Home Loans, Credit Cards, Tax.

Links will take you to guide2.co.nz.

Connect with Voxy

Voxy on Google Plus     Join Voxy on Google+.

 

Credit Card Comparison TablesCompare Credit Cards - Interest rate and fees comparisons for New Zealand banks.