Archive

Reserve Bank of New Zealand: Oct-23

• The Monetary Policy Committee unsurprisingly retained the Official Cash Rate at 5.50%, rooted in their commitment to moderate inflation and foster sustainable employment amidst changing global and domestic economic landscapes.
• Internationally, while global economic growth remains below the desired trend, especially in critical areas like China, core inflation's decline has been slower and inconsistent. Domestically, the New Zealand economy witnessed an unexpected surge in the June quarter's GDP growth but continues to experience a moderating demand growth trajectory.
• Risks to the New Zealand economy encompass potential resilience in domestic demand in the short term and a more protracted global growth decline in the medium term. The Committee remains vigilant of the varied impacts of high domestic interest rates on different sectors, noting emerging stress pockets but maintains confidence in achieving their dual mandates.

New Zealand retail sales -0.96% q-o-q (consensus -2.6) in Q2-23

- New Zealand retail sales in Q2-23 declined by a smaller percentage than expected, with a decrease of 0.96% q-o-q compared to a consensus forecast of -2.6%.
- Despite the decline, the retail sector in New Zealand experienced its highest growth since Q3-22, indicating a potential rebound.

RBNZ: Aug-23

• The MPC retains the OCR at 5.50% in response to persistently high core inflation, aiming to guide consumer price inflation within the 1 to 3% target range.
• Global economic headwinds, especially from China, coupled with internal demand-supply dynamics, necessitate sustained restrictive monetary measures.
• Despite existing economic challenges, New Zealand's financial system exhibits resilience, with monetary policy effectively addressing both inflation and employment objectives.

New Zealand PPI inflation 0.22% q-o-q in Q2-23

- New Zealand's PPI inflation in Q2-23 increased by 0.22% compared to the previous quarter, remaining steady but lower than the one-year and long-run averages.
- The PPI input price inflation decreased by -0.22% in Q2-23, indicating a potential decrease in upstream production costs.