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MNI RBNZ WATCH: MPC Holds, Turns Dovish

(MNI) Melbourne

The MPC held the OCR Wednesday, softening its tone.

The Reserve Bank of New Zealand’s monetary policy committee held its official cash rate at 5.5% Wednesday, and shifted to a more dovish tone by stressing evidence of slowing inflation, excess productive capacity and an eased labour market.

In its statement, the MPC noted the extent of the OCR’s “restraint will be tempered over time consistent with the expected decline in inflation pressures,” a departure from May’s statement that “monetary policy needs to remain restrictive."

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The Reserve Bank of New Zealand’s monetary policy committee held its official cash rate at 5.5% Wednesday, and shifted to a more dovish tone by stressing evidence of slowing inflation, excess productive capacity and an eased labour market.

In its statement, the MPC noted the extent of the OCR’s “restraint will be tempered over time consistent with the expected decline in inflation pressures,” a departure from May’s statement that “monetary policy needs to remain restrictive."

Keep reading...Show less