RBNZ MPS Sep 09

So the Reserve Bank left the cash rate unchanged at 2.5%.

Three quick points:

  1. Their forecasts are stronger than in June,
  2. They talked alot about structural imbalances (something I heard about a couple of months ago),
  3. They actually framed their decision in terms of inflation again, like the Aussies have been.

“Annual CPI inflation is currently well within the target band and is expected to track comfortably within the band over the medium term”

Thank you 🙂

All in all, it was a good statement from the Bank.  I’m just not sure if I really believe them when they say they won’t increase the OCR until late-2010 😉

3 replies
  1. NZBR Tours
    NZBR Tours says:

    Agree with the Reserve Bank. Inflation is under control; house market is not too bad at the moment and the economy is showing signs that the worse of the international crisis is over.

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