The RBNZ shifts into neutral, for now

The Reserve Bank of New Zealand's more dovish outlook for interest rates marks a big departure from recent months, but it won't be able to sit on the fence for long.

The Reserve Bank of New Zealand has reverted to a more neutral stance on monetary policy, which suggests that rates will remain unchanged for some time. But with the Canterbury rebuild still in the works, it appears likely that rates will need to rise further to moderate strength within the non-construction sector.

The cash rate in New Zealand remained at 3.5 per cent in January. Rates have increased by 100 basis points since the RBNZ began its tightening phase in March last year.

{{content.question}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles