Alan Bollard, appointed governor of the Reserve Bank in 2002, is releasing a monetary policy statement on 5 June 2008. He opened with a statement on the official cash rate, the interest rate the bank sets to meet its inflation target. On this occasion the rate remained unchanged at 8.25%. By 30 April 2009, in the wake of the global economic downturn, it was 2.5%. Changes in the official cash rate influence short-term interest rates, the level of economic activity and inflationary expectations. Accordingly, such statements attract a great deal of media attention.
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