reserve bank tagged posts
March 18, 2013 New Zealand Taxation
The New Zealand Reserve Bank takes an expansive and holistic approach to analyzing economic factors affecting its policy decisions.
In a speech given late last week in Wellington the assistant governor of the Reserve Bank of New Zealand John McDermott explained the importance of economic forecasting for making decisions when setting the country’s monetary policies.
He said that there is no single “correct way to look at the economy”, and emphasized that the Reserve Bank analyzes data from several different sources when making a policy decision.
While describing the Bank’s forecasting procedures, John McDermott said that currently some of the most significant issues faced in New Zealand are the “…treatment of the persistently high exchange rate, high household debt and accounting for th...Read More
September 21, 2012 New Zealand Taxation
A new Policy Targets Agreement has been signed, outlining the goals of the Reserve Bank over the coming years.
On September 20th the Finance Minister of New Zealand Bill English and the upcoming Reserve Bank Governor Graeme Wheeler signed a new Policy Targets Agreement (PTA), outlining the Reserve Bank’s aims and policies over the next five years.
The new PTA aims to address some of the issues which New Zealand faced during the global economic downturns in 2008, and Bill English described the changes as only “some additional wording” which “…has been agreed with the new Governor to reflect lessons from New Zealand’s last economic cycle and the Global Financial Crisis.”
The Minister explained that the previous PTA has served New Zealand well, and no major changes were required to the aims...Read More
March 1, 2010 New Zealand Finance
The New Zealand Institute of Economic Research (NZIER) has released its latest report, in which it describes New Zealand’s economic recovery over the upcoming years as “jagged”, along with “bumpy and subdued”.
On March 1st, the NZIER released the March 2010 Quarterly Predictions report, which stated that although New Zealand is no longer facing a recession, its economic recovery will be slow and “jagged”. Growth of only 2.7 percent was projected for the 2010 calendar year, and 1.4 percent for 2011. Shamubeel Eaqub, NZIER Principal Economist, stated that several key economic indicators, both internationally and locally, are giving cause for concern and calling for restraint on any recovery estimates.
According to the report, the New Zealand Reserve Bank does not yet have any...Read More
January 31, 2010 New Zealand Finance
The New Zealand Official Cash Rate (OCR) was left unchanged at its latest review.
At the quarterly Reserve Bank OCR Review, on January 28th, it was announced that the rate would remain at its current level of 2.5 percent. Alan Bollard, Reserve Bank Governor, said that the decision comes as a result of the economy remaining consistent with projections made in the December Monetary Policy Statement. He continued on to say that the annual CPI inflation is situated squarely in the target band and is expected to remain within the area over the medium term.
The New Zealand OCR has remained at 2.5 percent since April 30th, 2009. It has been unchanged through six OCR review announcements...Read More