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RBNZ meeting of February 8, 2018

Reserve Bank of New Zealand, RBNZ, interest rate, New Zealand dollar

Reserve Bank of New Zealand, RBNZ, interest rateIn the meeting on February, 8 2018, the Reserve Bank New Zealand (RBNZ) has left the Official Cash Rate (OCR) at 1.75%. You can download the Official Cash Rate report and the Monetary Policy Statement (both in pdf format) at the end of the article.

A clarification: the date refers to New Zealand, in North America and Europe is still the previous day.

The Official Cash Rate (OCR) is an interest rate set by the Reserve Bank. It influences all other interest rates and is, in effect, the wholesale price of borrowing or lending money in New Zealand. It allows the Reserve Bank to meet its goal of ensuring price stability for New Zealand.

The OCR was introduced in March 1999 and is reviewed eight times a year by the Bank. Monetary Policy Statements are issued with the OCR on four of those occasions. Unscheduled adjustments to the OCR may occur at other times in response to unexpected or sudden developments, but to date, this has occurred only once, following the 11 September 2001 attacks on the World Trade Centre in New York.

The Reserve Bank uses monetary policy to control inflation and keep it within a specific target band. Find out about how the Reserve Bank uses and implements monetary policy to maintain price stability. 

RBNZ uses monetary policy to maintain price stability as defined in the Policy Targets Agreement (PTA). The current PTA requires the Bank to keep inflation between 1 and 3 percent on average over the medium term, with a focus on keeping future average inflation near the 2 percent target midpoint. The Bank implements monetary policy by setting the Official Cash Rate (OCR), which is reviewed eight times a year.

Inflation is the term used to describe a rise in average prices through the economy. It means that money is losing its value. This section provides a variety of resources that explain inflation and deflation. This connects to how the Reserve Bank uses monetary policy to maintain price stability.

RBNZ publishes its Monetary Policy Statement quarterly. Each statement must set out: how the Reserve Bank proposes to achieve its targets, how it proposes to formulate and implement monetary policy during the next five years; and how monetary policy has been implemented since the last Monetary Policy Statement.

If you are interested, you can find all the previous Official Cash Rate (OCR) on the Reserve Bank of New Zealand (RBNZ) website. You find also the minutes.You can check the meetings scheduled for 2018 of the world's leading Central Banks and the last Central Banks reports

pdf, format, file, download Official Cash Rate

pdf, format, file, download Monetary Policy Statement

 

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