With the recent Official Cash Rate (OCR) announcement on 9th June 2011 the Reserve Bank Governor General Alan Bollard left the OCR at 2.5 percent.
There has not been a huge amount of change since the last OCR update in April with Alan Bollard stated that the early signs of recovery noted in the March statement have continued.
The New Zealand dollar however has appreciate substantially over the past 2 months, which has supported high export prices, but has been negatively affecting other parts of the tradable sector and constraining rebalancing of the New Zealand economy.
The comment made by Alan Bollard was that a gradual increase in the OCR over the next two years will be required as underlying inflation increases. The pace and timing of these increases will be guided by the speed of recovery, but for now the OCR remains on hold.
To view the full statement released by RBNZ please click here.
Source: The Reserve Bank of New Zealand – News Releases.
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