RBNZ holds rates as economy enters recession

Policy-makers keep policy restrictive to tame inflation despite economic downturn

Photo: Rachael King

The Reserve Bank of New Zealand (RBNZ) left its policy rate unchanged for the sixth straight meeting today (April 10), despite the economy entering recession.

The RBNZ’s seven-member monetary policy committee kept the official cash rate at 5.5%, the highest level since December 2008.

“A restrictive monetary policy stance remains necessary to further reduce capacity pressures and inflation,” the central bank said in a statement. It noted that current consumer price inflation remains above its 1–3%

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account