December OCR tagged posts
December 4, 2008 New Zealand Finance
On the 4th of December the Reserve Bank of New Zealand cut its Official Cash Rate by 1.5%, reducing it to a level of 5% from its previous 6.5%.
The change was announced by Reserve Bank Governor Alan Bollard on the morning of the cut. The news was justified by the Reserve Bank’s worsening view of upcoming economic situations. Specifically, it was quoted that the Reserve Bank does not expect a respite in the recession until mid-2009 and a below average economic trend until at least 2010.
The new OCR is the lowest it has been since it was at the same level at the beginning of 2005. Since the July of 2008, the OCR has dropped by 3.25%
The level of the OCR cut fits with the general trend of predictions made previously...Read More