• The Reserve Bank is to give clearer signals about what it expects to do to interest rates, by publishing projections for the benchmark official cash rate (OCR).

On Tuesday the central bank announced a change to an element of its quarterly monetary policy statement (MPS), from publishing the likely path for short term interest rates for the coming years, to publishing the future path for the OCR.

The 90-bank bill rate typically provides a gauge of financial market expectations for what the Reserve Bank is expected to do with the OCR, aside from at times of stress in financial markets.

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David White
Future editions of the quarterly monetary policy statement – the Reserve Bank’s summary of the outlook for the economy – will include explicit projections of the future of the official cash rate.