OCR remains unchanged, expected to stay at 1.75 per cent through to 2020

September 27, 2018
New Zealand hundred dollar bills.

The Official Cash Rate (OCR) will sit at 1.75, expected to remain unchanged in 2019 and through to 2020. 

Reserve Bank Governor Adrian Orr made the announcement this morning, saying the outlook "assumes the pace of growth will pick up over the coming year, assisting inflation to return to the target mid-point". 

"We will keep the OCR at an expansionary level for a considerable period to contribute to maximising sustainable employment, and maintaining low and stable inflation," Mr Orr said. 

A lower NZD exchange rate and "robust" global economic growth looks to support demand for Kiwi exports, and spending and investment by the NZ Government and households should support growth, Mr Orr said. 

High fuel prices in New Zealand were likely to boost inflation, "but we will look through this volatility as appropriate". 

Trade tensions of large nations could also undermine global growth, Mr Orr said. 

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