Video: RBNZ Monetary Policy Statement October23

The Reserve Bank of New Zealand warned of a further slowing of the economy and an early return of inflation to the 1-3% target band because of the global financial turmoil and lower consumer spending as it cut the OCR by 100 bps to 6.5%. Economic activity will be further constrained, relative to the outlook presented in our September Monetary Policy Statement, by these international developments, Reserve Bank Governor Alan Bollard said. The Reserve Bank forecast GDP growth of 0.5% and 2.3% for the 2009 and 2010.