Sharechat Logo

RBNZ to replace 90-day bank bill projection for track of OCR starting in November statement

Tuesday 25th October 2016

Text too small?

The Reserve Bank will replace its projection for the track of the 90-day bank bill rate with one for the official cash rate, saying the 90-day rate is no longer a clear signal for the direction of interest rates.

"Historically the 90-day bank bill rate has provided a good gauge for the stance of monetary policy because it typically moves in a consistent manner with the OCR," the bank said in a statement. "Variations in the past have generally been temporary and experienced during periods of financial stress. More recently, regulatory changes in global financial markets have also been altering the relationship between the 90-day bank bill and OCR, complicating the bank’s communication of the monetary policy outlook.'

Publishing a track for the OCR  is "a more transparent way of presenting the expected policy actions needed to achieve (the bank's) inflation target," it said. The switch doesn't imply any change to the way monetary policy is conducted. "As with previous 90-day rate forecasts, projections for the OCR are conditional on the bank’s assessment of current economic conditions and assumptions about the future evolution of the New Zealand economy."

The August monetary policy statement had the 90-day rate falling to 1.8 percent in the second quarter of 2017, from an average 2.4 percent in the same quarter this year.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

KMD - 1H FY2024 Interim Results
SCT - Resignation of Chief Executive Officer
March 19th Morning Report
SKC - APPOINTMENT OF CHIEF INFORMATION OFFICER
NWF - Chief Executive Officer Warren Koia Resignation
March 18th Morning Report
Pacific Edge Directors Give Notice of Retirement
Meridian Energy monthly operating report for February 2024
Another unworkable farming rule bites the dust
March 14th Morning Report