Wednesday, January 26, 2011

RBNZ Holds OCR at 3.00%

The Reserve Bank of New Zealand (RBNZ) held the Official Cash Rate at 3.00% as widely expected by the market. The RBNZ noted that "for now it seems prudent to keep the OCR low until the recovery becomes more robust and underlying inflationary pressures show more obvious signs of increasing". New Zealand produced 1.5% GDP growth y/y in the September quarter (which was lower than that projected by the RBNZ), while prices rose 4% through 2010 - driven by short term influences such as an increase in the GST, or sales tax, rate.
 

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