“The Funding for Lending Programme (FLP) is working largely as planned and it'll be staying in place until its scheduled end in December,” the Reserve Bank of New Zealand (RBNZ) responded when Interest.co.nz asked a series of questions about the FLP. The FLP was launched by the RBNZ in December 2020 to provide additional monetary stimulus to the economy.
RBNZ Governor Orr said on Tuesday that it is undertaking a review of its recent performance in conducting monetary policy, per Reuters. "The review will assess inflation and employment outcomes relative to the targets outlined in the remit and the decisions taken at various times based on the information available when they were made", noted
“CPI climbed 1.7% q/q in 1Q22, a tad lower from the 1.8% q/q in 1Q22, but above expectations for a gain of 1.5% q/q. Compared to the same period a year ago, CPI advanced 7.3% y/y, an acceleration from 6.9% y/y in 1Q22. The outcome was also above expectations for a reading of 7.1% y/y”, the economist at UOB Group Lee Sue Ann noted.
Lee Sue Ann, Economist at UOB Group, comments on the latest RBNZ event. “The RBNZ clearly remains determined in containing inflation risks, stating that it remains appropriate to continue tightening monetary conditions at a pace to maintain price stability and support maximum sustainable employment.”
The Reserve Bank of New Zealand met on Tuesday to decide on its official cash rate and has lifted rates by the max expected, 50 basis points to 1.5% to combat inflationary headwinds pertaining to the Omricon disruptions and the Ukraine crisis.
The Reserve Bank of New Zealand is New Zealand's central bank. Like most central banks, the Reserve Bank is primarily a policy organisation, and exists to do three main things: formulate and implement monetary policy to maintain price stability, promote the maintenance of a sound and efficient financial system and meet the currency needs of the public.
The official website, on Twitter and YouTube
Adrian Orr is the Governor of the Reserve Bank of New Zealand. He was appointed in March 2018. He is New Zealand born and bred, and primarily of Cook Island and Irish descent. Adrian graduated from the University of Waikato in 1983 with a Bachelor of Social Sciences, majoring in Economics and Geography. He also holds a Master’s Degree in Development Economics (Distinction) from the University of Leicester, England, graduating in 1985. Adrian has also served as Chair of the International Forum of Sovereign Wealth Funds, and Chair of the Pacific Pension and Investment Institute.
Adrian official RBNZ profile
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.