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Reserve Bank keeps OCR at record low of 2.25 per cent


The Reserve Bank has left the Official Cash Rate unchanged at 2.25 per cent.

New Zealand currency Source: 1 NEWS

Reserve Bank Governor Graeme Wheeler made the announcement today.

In statement the Reserve Bank says: "Monetary conditions are extremely accommodative internationally, with considerable quantitative easing and negative policy rates in some countries".

"Financial market volatility has eased in recent weeks, but markets continue to watch closely the policy settings of major central banks."

Our Political Editor Corin Dann analyses what today's decision means 

The Reserve Bank says the domestic economy is being supported by strong inward migration, construction activity, tourism and accommodative monetary policy.

Dairy export prices have improved slightly, but are below break-even levels for most farmers.

"The exchange rate remains higher than appropriate given New Zealand's low commodity export prices," the statement reads.