The Reserve Bank has announced today that the official cash rate (OCR) will remain unchanged at one per cent.
In August the official cash rate was cut by 0.5 percentage points to one per cent – a record low.
The reduction in the OCR means lower interest rates for borrowers.
Long-term interest rates are low around the globe, meaning New Zealand interest rates are expected to stay low for longer.
“Keeping the OCR at low levels is needed to ensure inflation increases to the mid-point of the target range and employment remains around its maximum sustainable level” the Reserve Bank said in a statement.
According to the Reserve Bank, the demand for New Zealand's goods and services is currently lower due to global trade tensions.
It also states that business confidence in New Zealand is lacking due to low profitability in some sectors which is affecting investment decisions.
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