Reserve Bank Governor tagged posts

NZ OCR Unchanged

October 30, 2009 New Zealand Finance

The New Zealand Official Cash Rate (OCR) remains unchanged, as of its 29th of October review.

On the 29th of October it was revealed that the Reserve Bank of New Zealand has decided to maintain the New Zealand OCR at 2.5%. The review was the fourth which had led to an unchanged OCR, the last alteration being on the 12th of March 2009.

According to Alan Bollard, Reserve Bank Governor, there seemed to be no reason to withdraw the monetary policy stimulus. Further, New Zealand’s inflation is currently on par with the Reserve Bank’s 1-3% inflation aim. Although it was stated by the Reserve Bank Governor that the current level of the New Zealand dollar is hindering the countries recovery...

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Government Mulls Property Taxes

September 11, 2009 New Zealand FinanceNew Zealand Taxation  No comments

Statements made by Alan Bollard indicate a possible creation of a property speculation tax.

In a statement on the 10th of September, Alan Bollard, Reserve Bank Governor stated that he would support the introduction of a property speculation tax in New Zealand. He provided no firm mechanics on any such possible system, but a brief overview of the idea was described. Levies could be imposed on owner unoccupied housing, possibly immediately or if sold within a preset time period. The idea behind such a tax would be to rein in property speculation and balance the benefits of investing in housing with equal investments in the business sector. It was made adamant that any such system would not be imposed on owner occupied housing.

Opposition to the idea has already been voiced by the Business Ro...

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Banks May Face New Safety Regulations

November 11, 2008 International Finance  No comments

According to statements made by Reserve Bank Governor, Alan Bollard, the Reserve Bank is talking to commercial banks about possible new funding and liquidity standards.

While releasing the bi-annual Financial Stability Report, Alan Bollard disclosed the proposed new policy which is aimed at creating incentives for banks to diversify their reliance on funding sources. Primarily it is aimed at reducing the use of short-term wholesale as a source of funding, so as to reduce the bank’s exposure to market disruptions.

In the statement Alan Bollard maintained that he is positive about the state of the New Zealand financial system, despite the seeming financial turmoil that can be seen throughout the world’s financial institutions...

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Official Cash Rate Cut

October 23, 2008 New Zealand Finance  No comments

The Reserve Bank has cut the Official Cash Rate (OCR) to 6.5%.

On Thursday 23rd of October, the Reserve Bank Governor, Alan Bollard, stated that the OCR is cut by 100 basis points, or 1 %, bringing the rate to 6.5%. While this move may seem counter-intuitive considering New Zealand’s recent level of high inflation, the aim of the move was to counter-balance the oncoming times of credit tightening and fears. Governor Alan Bollard said in a statement, that New Zealand is likely to face an oncoming time of low export demand and decreased levels of credit availability. He also predicted a time of decreased consumer and business spending, justifying the OCR rate cut decision...

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