Wellington August 16 2023: New Zealand’s central bank held its cash rate steady at 5.5% on Wednesday but slightly pushed out when it expects to start cutting borrowing costs to 2025, which provided some support for the New Zealand dollar.
“The committee agreed that the OCR (official cash rate) needs to stay at restrictive levels for the foreseeable future to ensure annual consumer price inflation returns to the 1% to 3% target range,” the bank said in its policy statement.
New Zealand’s central bank held its cash rate steady at 5.5% on Wednesday but slightly pushed out when it expects to start cutting borrowing costs to 2025, which provided some support for the New Zealand dollar.
“The committee agreed that the OCR (official cash rate) needs to stay at restrictive levels for the foreseeable future to ensure annual consumer price inflation returns to the 1% to 3% target range,” the bank said in its policy statement.
