Northern Advocate
  • Northern Advocate home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Sport
  • Property
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Sport
  • Property
    • All Property
    • Residential property listings

Locations

  • Far North
  • Kaitaia
  • Kaikohe
  • Bay of Islands
  • Whangārei
  • Kaipara
  • Mangawhai
  • Dargaville

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales
  • Classifieds

Weather

  • Kaitaia
  • Whangārei
  • Dargaville

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / Northern Advocate

Reserve Bank cuts Official Cash Rate to record low 1.5 per cent

Liam Dann
By Liam Dann
Business Editor at Large·NZ Herald·
8 May, 2019 02:00 AM2 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Analysis of the official cash rate cut on May 8th 2019.

The Reserve Bank has cut the Offical Cash Rate to a record low 1.5 per cent and signaled further cuts will follow.

The RBNZ cut the rate from 1.75 per cent at 2pm. The kiwi dollar dropped half a cent on the news to US65.55c

"The Monetary Policy Committee decided a lower OCR is necessary to support the outlook for employment and inflation consistent with its policy remit," the newly minted committee - which includes three external members - said in the statement.

Changes to the central bank's forecasts in the latest monetary policy statement now show a chance for another cut by March. The OCR track goes from 1.8 per cent to 1.4 per cent in March 2020. The bank's prior forecast in February had indicated the first move wasn't anticipated until the first half of 2021, and that that move would have been up.

In March, however, governor Adrian Orr surprised markets when he said that, given the weaker global economic outlook and reduced momentum in domestic spending, the more likely direction of the next official cash rate move was down.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Markets had been unsure of whether or not the central bank would cut rates today as the global economy has been more positive, with both the US Federal Reserve and the Reserve Bank of Australia holding benchmark rates this week. On the flip side, headline inflation remains below the 2 per cent mid-point of the central bank's target range and economic growth has been tepid.

Market pricing had pointed to a 50 per cent chance of a 25 basis-point cut to 1.5 per cent today. The median estimate in a Bloomberg poll of 17 economists was for a 25 basis-point rate cut to 1.5 per cent, although many said they were on the fence.

Save

    Share this article

Latest from Northern Advocate

Northern Advocate

Saving lives: Mobile AED startup named best emerging business

Northern Advocate

'Public safety at risk': Guns, cannabis found in Kaitāia raid

Northern Advocate

'Rain, wind and snow': North Island in for day of wild weather


Sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

Advertisement
Advertise with NZME.

Latest from Northern Advocate

Saving lives: Mobile AED startup named best emerging business
Northern Advocate

Saving lives: Mobile AED startup named best emerging business

Winner Georgia Keys took action after witnessing a young woman die from cardiac arrest.

16 Jul 11:00 PM
'Public safety at risk': Guns, cannabis found in Kaitāia raid
Northern Advocate

'Public safety at risk': Guns, cannabis found in Kaitāia raid

16 Jul 10:53 PM
'Rain, wind and snow': North Island in for day of wild weather
Northern Advocate

'Rain, wind and snow': North Island in for day of wild weather

16 Jul 10:52 PM


Solar bat monitors uncover secrets of Auckland’s night sky
Sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

06 Jul 09:47 PM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • The Northern Advocate e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Northern Advocate
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The Northern Advocate
  • The New Zealand Herald
  • The Northland Age
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • © Copyright 2025 NZME Publishing Limited
TOP