The most important of the RBNZ report

The National Bank of New Zealand cut interest rates from 1.70% to 1.50%, which was also expected.

Here is the most important of the bank’s report, which led to the final decision on interest rate cuts:

  • The Commission has reached an overall consensus on the decision to reduce interest rates
  • The Commission has agreed on long-term low interest rates policy and considered that there are already conditions for its maintenance
  • Members of the commission have reached agreement on the basis of weak domestic consumption, counter-winds in the labor market and low growth forecasts. The Committee has recognized the need for additional monetary incentives
  • Key risks have had a stronger impact than originally assumed. The risks are mostly around China and Australia
  • Regarding the balance, the Committee has expressed its concern rather about the prolonged slowdown in the world economy
  • The Committee has reached agreement on the labor market – it is more depressed, with the expectation that it will weaken as early as 2019
  • The risks to inflation are balanced
  • Expectations for inflation are still realistic

 Trader Martin Nikolov

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance