Reserve Bank of New Zealand
- Demand growth in the economy continues to ease.
- Committee agreed that the OCR needs to stay at a restrictive level
- Interest rates are constraining economic activity and reducing inflationary pressure as required
- While GDP growth in the June quarter was stronger than anticipated, the growth outlook remains subdued.
- With monetary conditions remaining restrictive, spending growth is expected to decline further
- Near-term risk that activity and inflation do not slow as much as needed
- Prolonged period of subdued activity is required to reduce inflationary pressure
RBNZ minutes:
- Committee agreed that interest rates may need to remain at a restrictive level for a more sustained period of time
- Committee noted inflation is still expected to decline to within the target band by the second half of 2024
- Committee noted inflation is still expected to decline to within the target band by the second half of 2024
- Recent indicators show that employment intentions are flat and difficulty in finding labour has reduced
- Over the medium term committee agreed downside risks around the outlook for global growth remain
RBNZ Governor Orr
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Background to this decision:
