May RBNZ Decision and Budget Review

May was a busy month for New Zealand economic news with a Reserve Bank of New Zealand meeting and the budget falling on consecutive days. The RBNZ kept the Official Cash Rate (OCR) unchanged at 2.25% as widely expected, but sent a hawkish signal by confirming that the Committee split 3-3 in its decision, with the three external members favouring an immediate 25bp rate hike and the three internal members favouring a hold. Governor Anna Breman’s casting vote resulted in the OCR remaining unchanged.