Domestic and international risks keep monetary policy on hold - NZIER Shadow Board
11 September 2013
“The NZIER Shadow Board recommends keeping the official cash rate at 2.5 percent,” said Jean-Pierre de Raad, Chief Executive at NZIER.
“Inflation is low. Auckland’s housing market is still at elevated levels, which presents risks. Views are mixed on the likely effectiveness of the Reserve Bank’s restrictions on loan-to-value ratios.”
“Internationally some emerging markets are becoming stressed as money returns to the US where yields are rising.”
“With inflation low, and taking account of the risks, NZIER’s Shadow Board believes the appropriate monetary policy strategy is to leave the official cash rate where it is.
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