Published May 25, 2022 3:00 am est
by Richard F. Cason, 
Currency Strategist,
NewsMovesmarketsForex
Key Take away’s-
- RBNZ Raised the Official Cash Rate by .50 base points to 2.00 percent
- Committee agreed to tightening monetary conditions to maintain economic price stability and support maximum employment
- Reserve Bank of New Zealand remains resolute to insure future consumer price inflation returns to target price of 1 to 3 percent range
- RBNZ acknowledges to curtail runaway inflation, global geopolitical economic uncertainties head winds- that larger and earlier Official Cash Rate increases may minimizes effect of Intrenched inflation with in the New Zealand Economy
- Russian Ukraine conflict has disrupted and exacerbating global supply chains as well as the COVID-19 nuisance continue to propel food and energy prices runaway rates
- COVID-19 restrictions in China have Disrupted and clogging up supply chains adding cost and complexity to New Zealand Trade markets
- The Central bank signals that it will maintain its projected path of the OCR increases to attempt to stabilize employment and inflations without causing unnecessay instability in output, interest rates and the countries exchange rate
RBNZ remains hawkish increase OCR to 2 Percent to Curtail Runaway Inflation, the Reserve Bank of New Zealand committee, (RBNZ) officially met on May 25, 2022, agreed to raise the official cash rate to 2.00 percent. The Central bank increase the rate by .50 bases points to 2.00 percent, making it’s second continuous month of .50 bases points increase. See our previous story that clearly points out the Hawkish stance on combatting the run away inflation in the April’s Monetary Policy Committee meeting Decision, RBNZ raised rate by .50 bases points to 1.50 percent, NZDUSD retreats lower140 points April 13, 2022.
New Zealand Heighten global economic uncertainty and Runaway Inflation rate
The RBNZ committee said that to continue to lift the Official Cash Rate at pace to a level that will confidently bring consumer price inflation to within the target range. The Committee viewed that the projected path of the OCR as consistent with achieving its primary inflation and employment objectives without causing unnecessary instability in output, interest rates and the exchange rate. Further reiterated that.. Once aggregate supply and demand are more in balance, OCR can return to a lower, more neutral, level.
03:47 am est NZDUSD currency rate exchange @ .6493 up .59% Early European Session Market Trading NZD stronger than the green back and trading HIGHER ON THE NEWS RELEASE
