'Ongoing weak inflation' - Reserve Bank leaves OCR unchanged at record low

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The Reserve Bank of New Zealand has left the official cash rate unchanged at a record-low 1.75 per cent.

The measures are to counter predatory behaviour aimed at the poor.

Source: 1 NEWS

RBNZ Governor Adrian Orr announced the rate hold this morning, as largely expected by economists, citing ongoing weak inflation.

The central bank has not adjusted the official cash rate since 2016 and has been forecasting no changes until late next year.

In a statement little changed from the May decision, Mr Orr said the bank was "well positioned" to managed an eventual change up or down if necessary.

However, with consumer inflation still below 2 per cent, supportive monetary policy would be needed for some time.

"The best contribution we can make to maximising sustainable employment, and maintaining low and stable inflation, is to ensure the OCR is at an expansionary level for a considerable period," he said.

New Zealand's gross domestic product (GDP), the envy of the developed world in recent years, has slipped since late last year.

The economy notched growth of 0.5 per cent in the first three months of this year, compared to an average of 0.9 per cent since 2014.

New Zealand business confidence sank to a seven-month low in June, according to an ANZ Bank survey released this week.

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