News | Business
22 Feb 2018 21:53
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • News
  • Sport
  • Weather
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    RBNZ flags earlier rate hike in 2019

    The Reserve Bank has kept the OCR unchanged at 1.75 per cent but brought forward its predictions for a 2019 increase by three months.

    9 November 2017

    Acting Reserve Bank governor Grant Spencer has kept the official cash rate unchanged at 1.75 per cent but brought forward a potential rate hike to June 2019 from September that year and lifted its inflation forecast.

    While the forecasts were rejigged, Mr Spencer reiterated "monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly," he said in a statement on Thurday morning.

    Mr Spencer said the bank incorporated preliminary estimates of the impact of new government policies in four areas: new government spending; the KiwiBuild programme; tighter visa requirements; and increases in the minimum wage.

    "The impact of these policies remains very uncertain," he said.

    All 16 economists polled by Bloomberg predicted rates would remain unchanged but there had been a debate about whether the bank might alter its forecasts with emerging signs of inflation and a sharply weaker kiwi dollar than the bank expected.

    The bank's forecasts show the OCR rising to 1.9 per cent in June 2019, three months earlier than its prior projection.

    A full rate increase, however, is still signaled in March 2020 when the benchmark rate is forecast to be 2 per cent. Interest rates are also slightly higher at the end of the forecast period, rising to 2.1 per cent in June 2020 versus a prior forecast of 2 per cent.

    The key rate is seen at 2.3 percent in December 2020.

    The New Zealand dollar edged up after the statement and recently traded at US69.44 cents from US69.25c immediately before its release.

    © 2018 NZN, NZCity


     Other Business News
     22 Feb: Shares gain as investors take a2 above $9b
     22 Feb: Tourism Holdings doubles 1H profit
     22 Feb: A2 Milk a $10b company, eclipsing Fonterra
     22 Feb: Fuel prices bite Air NZ in profit decline
     22 Feb: NZME pays dividend, posts dip in earnings
     22 Feb: Amazon, tech stocks lift Wall St
     21 Feb: Kiwi gains against Aussie after weak data
     Top Stories

    RUGBY RUGBY
    Super Rugby week-two preview panel More...


    BUSINESS BUSINESS
    Shares gain as investors take a2 above $9b More...



     Today's News

    Technology:
    Russia-linked internet bots trying to make the world an angrier place 21:45

    International:
    Winter Olympics speed skaters and the athletes whose unusual bodies suit their sports 21:45

    Entertainment:
    Oscar Isaac knew he wanted to marry her after he saw his pregnant wife take care of his sick mother 21:35

    Rugby League:
    McLean faces NRL Storm front in NQld debut 21:15

    Entertainment:
    Matt LeBlac is “sure” Jennifer Aniston is “doing okay” following her split from Justin Theroux 21:05

    Entertainment:
    January Jones has insisted she is not dating Nick Viall 20:35

    Entertainment:
    George and Amal Clooney have donated $500,000 to the March For Our Lives movement 20:05

    Entertainment:
    Liam Gallagher has said the key to being a “rock star” is having “loud farts” 19:35

    Entertainment:
    Birdman has described his fiancée Toni Braxton as his “life” 19:05

    Business:
    Shares gain as investors take a2 above $9b 18:55


     News Search






    Power Search


    © 2018 New Zealand City Ltd