Monetary Policy Statement May 2018

Aim: Outline the Reserve Bank’s latest view on the New Zealand economy and factors that were considered when leaving the Official Cash Rate (OCR) unchanged in May 2018.

Outcome: Completion of this module will enable financial advisers to understand:

  • Recent changes in the New Zealand economy and how the RBNZ uses monetary policy to control inflation and keep it within a specific target band;
  • The factors that are likely to influence the New Zealand economy in the short to medium-term in respect of the movement in interest rates and exchange rates; and
  • Use that understanding to appropriately advise clients.

Abstract: The policy judgments made by the RBNZ when deciding to leave the OCR unchanged are outlined. Recent global financial market developments are considered and New Zealand’s current economic conditions analysed. The RBNZ’s macroeconomic outlook for New Zealand is described.