RBNZ Makes Good Move

The Reserve Bank of New Zealand (RBNZ) has made a good decision in leaving its official cash rate (OCR) unchanged at 2.5 percent at its June Monetary Policy Statement.

The Reserve Bank Governor Alan Bollard held that the pace and timing of OCR increases will be guided by the speed of recovery after the February earthquake.

The RBNZ is required to keep inflation between 1-3 percent on average over the medium term. The first quarter of the year inflation was a lower than expected 0.8 per cent, according to government data.

On a positive note, property values were largely unchanged last month, according to QV data, and are now 1.6 per cent lower than the same time a year ago. The property market has begun showing signs of life and opportunity for home buyers.

The RBNZs next OCR announcement will be made on the 28th July.

Tags: , , ,