FXStreet (Córdoba) – The Reserve Bank of New Zealand decided to keep the Official Cash Rate (OCR) unchanged at 2.5% at today’s meeting.
Regarding inflation, the RBNZ said that even though the headline CPI inflation remains low, mainly due to falling fuel prices, it is expected to increase over 2016, but it will take longer to reach the target range than previously expected.
“Monetary policy will continue to be accommodative. Some further policy easing may be required over the coming year to ensure that future average inflation settles near the middle of the target range. We will continue to watch closely the emerging flow of economic data”, the bank said in a statement.
The RBNZ acknowledged financial market volatility has increased, and global inflation remains low amid weaker oil prices. Despite a slowdown in the first half of 2015, the bank expects the pace of growth to increase in 2016.
“A further depreciation in the exchange rate is appropriate given the ongoing weakness in export prices”, said the RBNZ.
(Market News Provided by FXstreet)