Reserve Bank Governor Adrian Orr has this morning announced the Official Cash Rate (OCR) will remain at 1.75 percent for some time.
The decision is based on strong economic growth and employment levels. Orr advised that keeping the OCR at this level will help to ensure the gradual increase of New Zealand's consumer price inflation to the 2 percent annual target.
The key points of the Monetary Policy Statement, also released this morning:
- Global growth continues to support the New Zealand economy
- Employment growth continues to be strong
- Low import prices have kept inflation low
- Low interest rates will help support employment and raise inflation