Skip to main content

New Zealand - Orr’s sticking to the plan

The Reserve Bank of New Zealand will almost certainly leave interest rates on hold at 1.75% at its policy meeting on Thursday 28th June and Governor Orr may well repeat that rates will stay at this level for “some time to come”. But with GDP growth likely to fall short of the RBNZ’s projections and inflation set to remain subdued, we anticipate that rates will remain on hold for even longer than the RBNZ or the financial markets currently expect. We suspect that the first rate rise may not occur until 2020.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access