Tonight the Reserve Bank of New Zealand pronounces on economic policy. The announcement will be at 22:00 Argentina (GMT-3).
The entity will publish its decision based on the evolution of the country’s economy. During the first half of the year, it maintained a constant growth trajectory. However, during the third quarter, the growth curve and post-crisis recovery slowed down.
Economic indicators make it possible to project on changes in monetary policy since, for example, the unemployment rate fell from 4.7% to 4% in the first semester. While the Consumer Price Index, marked a growth in the same period of the year. Although October 17 will be the next one announced, inflation has reached 3.3% year-on-year, above the Bank’s expectations.
Although the economy shows signs of recovery, it still has effects due to the restrictions that they had to impose due to the spread of the pandemic a few months ago. Annualized GDP growth as of June 2021 was 5.1%. The growth of the last quarter was 2.8% last June.
Taking into account the objectives in employment and inflation, the evolution of these indicators show probabilities in the changes in interest rates.
The current interest rate remains at 0.25% since March 2020 and is projected to increase to 0.5%
In the last announcement, an increase was projected that had to be discarded, given the implementation of restrictions on the circulation of covid19. This announcement will coincide with the announcement of a new stage of unlocks to circulation, giving an economic boost.