Reserve Bank Governor Allan Bollard tagged posts

OCR Cut Down to 3%

March 12, 2009 International FinanceNew Zealand Finance  No comments

The Official Cash Rate (OCR) of New Zealand has been cut to 3%.

The Reserve Bank has taken an expected move and once again cut the New Zealand OCR by 50 basis points, bringing it to 3%, from its previous position of 3.5%.

At first glance, the move is a relatively small one, especially since it has been preceded by numerous previous cuts, many of a much greater magnitude. The smaller cuts were driven by the Reserve Bank’s relatively positive future outlook for the New Zealand economy.

It seems that many economists were counting on a higher cut, the level of the New Zealand dollar reflects the fact that a higher cut was expected. Before the announcement, the New Zealand dollar was trading at US 0.5080c, post announcement it was at US 0.5120c...

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