Reserve Bank of New Zealand moentary policy meeting outcome
Official Cash Rate remains on hold at 2.75%
– Further easing seems likely, depends on data
– Sharp fall in dairy prices weighing on farm incomes
That comment on the New Zealand dollar is quite pointed, that’s the most significant thing I’ve seen in the statement so far. Everything else is pretty much on script and as expected. The currency comment is indicative of RBNZ concern over a rising NZD and is a hint at the potential for RBNZ intervention. The RBNZ have very clear guidelines on when they will intervene.