Breaking: RBNZ keeps OCR steady at 0.25%, expands QE size to NZD60 billion – Kiwi jumps

At its second scheduled monetary policy meeting for this year, the Reserve Bank of New Zealand (RBNZ) decided to leave the Official Cash Rate (OCR) unchanged at a record low of 0.25% in May.

New Zealand’s central bank expands the quantitative easing (QE) programme size, matchingt expectations of an increase to around NZD60 billion.

In a surprise move, instead of meeting on March 25th, the Reserve Bank of New Zealand (RBNZ) set its official cash rate at 0.25% on March 15th in an emergency meeting. At that meeting, Governor Adrian Orr said that the board is not contemplating negative interest rates.

What followed after a week was the QE announcement, with NZD33bn of NZGBs of different maturities across the yield curve over the next 12 months.

About RBNZ Interest Rate Decision

RBNZ Interest Rate Decision is announced by the Reserve Bank of New Zealand. If the RBNZ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the NZD.