{"id":11639,"date":"2024-10-10T05:29:32","date_gmt":"2024-10-09T16:29:32","guid":{"rendered":"https:\/\/thebuzz.apnanetwork.co.nz\/?p=11639"},"modified":"2024-10-10T05:29:32","modified_gmt":"2024-10-09T16:29:32","slug":"reserve-bank-gives-in-to-pressure-with-massive-ocr-cut","status":"publish","type":"post","link":"https:\/\/thebuzz.apnanetwork.co.nz\/?p=11639","title":{"rendered":"Reserve Bank gives in to pressure with massive OCR cut"},"content":{"rendered":"<ul>\n<li><b>RBNZ bows to pressure and makes big cash rate cut<\/b><\/li>\n<li><b>RBNZ says was a toss up between 25 and 50 basis point cut<\/b><\/li>\n<li><b>Economy weak and subdued because of high rates<\/b><\/li>\n<li><b>RBNZ gives little away on the next move, but another 50 bps expected in November<\/b><\/li>\n<\/ul>\n<p><i>Analysis\u00a0<\/i>&#8211; Over the decades the Reserve Bank has been keen to emphasise its independence and remind financial markets and the economic chattering classes that it&#8217;s in control.<\/p>\n<p>But its latest decision to\u00a0<a href=\"https:\/\/www.rnz.co.nz\/news\/business\/530268\/reserve-bank-cuts-official-cash-rate-to-4-point-75-percent\">slash the OCR<\/a>\u00a0by 50 basis points to an 18-month low of 4.75 percent has all the hallmarks of bending with the prevailing wind, which had been gathering hurricane force in the past week.<\/p>\n<p>The\u00a0<a href=\"https:\/\/www.rbnz.govt.nz\/hub\/news\/2024\/10\/ocr-4-75-monetary-restraint-reduced-as-inflation-converges-to-target\">short statement and summary of the meeting of the Monetary Policy Committee<\/a>\u00a0(MPC) said the double sized cut was justified by the subdued and weak economy, rising unemployment, external risks, and the confidence that inflation is finally back in the 1-3 percent target band<\/p>\n<p>The August monetary statement had the whiff of panic about it as the weekly and monthly drip of economic numbers and surveys painted an ever more dismal picture of the economy, prompting the start of the easing cycle with a 25 bps cut, and a signal that interest rates would be gradually reduced over the next couple of years.<\/p>\n<p>&nbsp;<\/p>\n<p>rnz<\/p>\n","protected":false},"excerpt":{"rendered":"<p>RBNZ bows to pressure and makes big cash rate cut RBNZ says was a toss up between 25 and 50 basis point cut Economy weak and subdued because of high rates RBNZ gives little away on the next move, but another 50 bps expected in November Analysis\u00a0&#8211; Over the decades the Reserve Bank has been [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":11640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[222,174],"tags":[],"class_list":["post-11639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","category-nz-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/11639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11639"}],"version-history":[{"count":1,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/11639\/revisions"}],"predecessor-version":[{"id":11641,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/11639\/revisions\/11641"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/media\/11640"}],"wp:attachment":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}