OCR Maintained at 2.5 Percent
June 13, 2013 New Zealand Finance
The rate of New Zealand’s OCR remains unchanged due to some unfavorable economic conditions nationally and worldwide.
On June 13th the Reserve Bank of New Zealand announced that the Official Cash Rate of New Zealand will remain unchanged at the current level of 2.5 percent.
The governor of the Reserve Bank Graeme Wheeler explained that the economic conditions in New Zealand and around the world do not yet warrant a shift in the Cash Rate, and the current economic forecasts indicate that the OCR will remain at 2.5 percent for the rest of the year.
Summarizing the current economic environment of New Zealand Graeme Wheeler said that the economic growth of the country is expanding, but is uneven across different industries.
He added that the New Zealand dollar is still overvalued and is having a constraining effect on potential economic growth, especially in the tradable sector.
Some of New Zealand’s trading partners are also seeing some economic turbulence, which is downplaying economic growth here.
The Reserve Bank expects overall economic growth to hit 3.5 percent by the second half of this year, and for inflation to reach the middle of the 1 percent to 3 percent band by the end of the year.
Photo by jthornett