The Official Cash Rate (OCR) is to remain unchanged at 1.75 per cent, the reserve Bank announced today.
It is expected to stay at that rate until 2020.
Reserve Bank Governor Adrian Orr said in a statement that the OCR would be kept "at an expansionary level for a considerable period to contribute to maximising sustainable employment, and maintaining low and stable inflation".
GDP growth was expected to increase next year, however "downside risks to the growth outlook remain".
"Weak business sentiment could weigh on growth for longer. Trade tensions remain in some major economies, raising the risk that trade barriers increase and undermine global growth."
"Upside risks to the inflation outlook also exist. Higher fuel prices are boosting near-term headline inflation. We will look through this volatility as appropriate. Our projection assumes firms have limited pass through of higher costs into generalised consumer prices, and that longer-term inflation expectations remain anchored at our target."
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