Official Cash Rate stays steady at 1.75 per cent, expected to remain same through to 2020

The Reserve Bank has left the Official Cash Rate on hold at 1.75 per cent and signalled it is likely to stay at that level through 2019 and 2020.

However, despite recent hints from Central Bankers in the US and Australia that interest rate hikes there are off the table, Reserve Bank Governor Adrian Orr has stuck to his view that the next move here could be either up or down.

Mr Orr said he expects low interest rates and Government spending support to lead to a pickup in domestic growth over 2019.

However, Mr Orr warned of a worsening global economy, noting that commodity prices have softened.

He said the risk of sharper downturn in trading partner growth has also heightened in recent months.