Reserve Bank leaves official cash rate at 5.5%
Reserve Bank leaves official cash rate at 5.5%
The Reserve Bank has left its benchmark official cash rate unchanged at 5.5 percent, as expected.
"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"
As expected, but OCR at 5.5 for a while is going to hurt.
Yeah, seems we're gonna be here for a while
What's the average OCR over the longer term?
Good Point - heres the Trend since 2000 https://www.rbnz.govt.nz/monetary-policy/monetary-policy-decisions
This was the expected outcome, last time to said they had "done enough" WRT rate rises.
5.5% for a year will hurt just a little, but that should be eased a little by inflation pulling back. And way less than inflation continuing to escalate without income raised to keep up.
Edit: got to check the autocorrect more closely when posting from my phone.