The Reserve Bank has decided to cut the Official Cash Rate by 25 basis points to 5.25%
Speaking at the release of the Reserve Bank's June 2003 Monetary Policy Statement, Reserve Bank Governor Alan Bollard said "Reducing the OCR is an appropriate response to a softening in inflation pressures and provides some protection for the economy against downside influences.
Thursday, June 5th 2003, 7:56PM
by The Landlord
"The evidence has become clearer that growth is beginning to slow following a period of strength. This slowdown mainly reflects the rapid appreciation of the exchange rate over the past 18 months, leaving the export sector more exposed to the soft world economy. We are projecting further slowing but expect domestic activity to remain reasonably robust with rapid growth in the population supporting demand. However, businesses are less assured about future trading prospects and confidence measures have fallen away. With confidence fragile, the impact of events such as SARS and dry weather on activity could be amplified.
