Reserve Bank of New Zealand Governor Breman has stated that the economic outlook is broadly in line with the Monetary Policy Committee’s expectations, with ongoing signs of growth recovery.

Breman reaffirmed that the forward path for the Official Cash Rate (OCR), as outlined in the November Monetary Policy Statement, still allows for a small chance of a further rate cut in the near term. However, she emphasised that if the economic conditions evolve as anticipated, the OCR is likely to remain at its current level of 2.25% for an extended period.

Additionally, Breman highlighted that financial market conditions have tightened since the November policy decision to a greater extent than the RBNZ’s central OCR projection had implied. This increased tightening will be taken into account in the Reserve Bank’s continuous evaluation of monetary settings and the outlook for both growth and inflation.

Original Source: Eamonn Sheridan of investinglive.com