Bollard re-works the BP

After 5 years, the New Zealand Reserve Bank has finally reduced the key OCR rate to 8%. Quite what relief it will bring to NZ consumers is debatable considering the global cost of credit.

For Pingar however, it is likely to have a significant benefit. A lower OCR normally translates into a lower exchange rate. With most of Pingar's earnings expected to come from the UK over the next 12 months, that is good news. The high NZ$ screw has been loosened.

Bollard's accompanying statement was also more dovish than perhaps expected. More cuts are on the way. For exporters, this cut has not come soon enough.