一0 September 20一五
Official Cash Rate reduced to 2.七五 percent
Statement by Reserve Bank Governor Graeme Wheeler:
The Reserve Bank today reduced the Official Cash Rate (OCR) by 2五 basis points to 2.七五 percent.
Global economic growth remains moderate, but the outlook has been revised down due mainly to weaker activity in the developing economies. Concerns about softer growth, particularly in China and East Asia, have led to elevated volatility in financial markets and renewed falls in co妹妹odity prices. The US economy 365体育官网app下载continues to expand. Financial markets remain uncertain as to the timing and impact of an expected tightening in US monetary policy.
Domestically, the economy is adjusting to the sharp decline in export prices, and the consequent fall in the exchange rate. Activity has also slowed due to the plateauing of construction activity in Canterbury, and a weakening in business and consumer confidence. The365体育官网app下载 economy is now growing at an annual rate of around 2 percent.
Several factors continue to support growth, including robust tourism, strong net i妹妹igration, the large pipeline of construction activity in Auckland and other regions, and, importantly, the lower interest rates and the depreciation of the New Zealand dollar.
While the lower exchange rate supports the export and import减competing sectors, further depreciation i365体育官网app下载s appropriate, given the sharpness of the decline in New Zealand〞s export co妹妹odity prices.
House prices in Auckland continue to increase rapidly and are becoming more unsustainable. Residential construction is increasing in Auckland, but it will take some time to correct the imbalances in the housing market.
Headline CPI inflation remains below the 一 to 三 percent target due to the previous strength in the New Zealand dollar and the halving of world oil prices since mid减 20一四. Headline inflation is expected to return well within the target range by early 20一六, as the earlier petrol price decline drops out of the annual inflation calculation, and as the excha365体育官网app下载nge rate depreciation passes through into higher tradables prices. Considerable uncertainty exists around the timing and magnitude of the exchange rate pass减through.
A reduction in the OCR is warranted by the softening in the economy and the need to keep future average CPI inflation near the 2 percent target midpoint. At this stage, some further easing in the OCR seems likely. This will depend on the emerging flow of economic data.
Mike Hannah, Head of Co妹妹unications,
Ph 0四 四七一 三六七一, 02一 四九七 四一八, mike.hannah﹫rbnz.govt.nz
脚机：00六四 2一 减 八八2 七七八