Economists split on whether New Zealand's central bank will raise the OCR
New Zealand's central bank Monetary Policy Committee will decide tomorrow whether to hold the official cash rate (OCR) steady. Economists are split on the likely move, which would come after the rate was left unchanged at four consecutive meetings.
New Zealand's central bank Monetary Policy Committee will decide tomorrow whether to change the official cash rate (OCR), the benchmark interest rate. The bank has held the rate steady at its past four meetings.
Economists are split this time. Some argue that data on inflation and domestic demand could push the bank toward a cautious increase, while others say a further hold is more likely given the slowdown in economic growth.
The decision has the potential to affect a broad range of areas, from the housing market to borrowing costs. Markets will focus not only on the decision itself but also on the bank's forward guidance and its assessment of inflation. The announcement is due tomorrow.
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