The Reserve Bank has announced this morning that the Official Cash Rate (OCR) will remain at 1.75 percent, as expected. It is likely to remain at this level through until 2020.
This is good news for mortgage rates, which are expected to remain low for now, to encourage people to spend and businesses to expand and invest.
The key points of the November Monetary Policy Statement, also released this morning, are:
- Low interest rates will support economic growth and inflation
- An expanding economy will support higher employment
- Prices have been increasing faster, particularly higher petrol prices, but this may not be sustained
- There are risks and uncertainty—inflation could rise faster, growth could slow further.
For a clear, easy to read summary, check out the RBNZ's Monetary Policy Statement in Pictures.
You can also read more from the RBNZ on this morning's OCR announcement here.