You are visiting the website that is operated by Ultima Markets Ltd, a licensed investment firm by the Financial Services Commission “FSC” of Mauritius, under license number GB 23201593. Please be advised that Ultima Markets Ltd does not have legal entities in the European Union.
If you wish to open an account in an EU investment firm and protected by EU laws, you will be redirected to Ultima Markets Cyprus Ltd (the “CIF”), a Cyprus investment firm duly licensed and regulated by the Cyprus Securities and Exchange Commission with license number 426/23.
During its July 2024 policy meeting, the Reserve Bank of New Zealand maintained its official cash rate (OCR) at 5.5%, marking the eighth consecutive rate pause and aligning with market expectations. The Committee noted that the restrictive monetary policy has been effective in reducing capacity pressures and consumer price inflation.
Headline inflation dropped to 4% in Q1 2024, reaching a nearly three-year low, though still above the 1-3% target range. Despite this, policymakers anticipate inflation will return to the target range in the second half of the year. As a result, the Committee agreed to keep monetary policy restrictive, with plans to gradually adjust the degree of restraint as inflation pressures are expected to decline.
The labor market has also shown signs of easing, attributed to cautious hiring practices and an increased labor supply. Overall, while progress has been made, the Reserve Bank remains committed to its restrictive stance to ensure inflation continues its downward trajectory towards the target range.
The New Zealand dollar (Kiwi) weakened against a strengthening US dollar following Fed Chair Powell’s Senate testimony reaffirming caution on rate cuts. The Kiwi fell to approximately $0.607.
(NZDUSD Weekly Chart)
Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.