In an announcement today the Reserve Bank indicated the risk of a global downturn has increased. While keeping the OCR unchanged for now at 1.75 percent, the bank has suggested the next move could be downward.
There is growing pressure on the New Zealand dollar as central banks ease their monetary policy stands due to a weakening global economic climate, especially with some of our key trading partners Australia, Europe and China.
Ongoing low interest rates, increased government spending and rising employment is expected to support economic growth throughout 2019. However, the Reserve Bank has indicated the balance of risks to the current economic outlook has shifted to the downside.
You can read more on the Reserve Bank website.