RBNZ to publish monetary policy forward guidance via the OCR - TDS

Research Team at TDS, notes that in a well-hidden RBNZ advisory statement the Bank announced an executive decision to henceforth publish monetary policy forward guidance via the official cash rate (OCR) rather than the traditional 90 day bank bill rate.

Key Quotes

“A more transparent way of presenting the expected policy actions needed to achieve its inflation target. It has no bearing on the way that the Bank conducts monetary policy. The publication of OCR projections brings the Bank into line with other central banks that publish expected policy paths (which doesn’t include the RBA).”