Economic outlook shifts to downside
The Reserve Bank is keeping the OCR “at an expansionary level” for now, but have indicated the next OCR move is likely to be down.
The OCR has been kept consistently at 1.75 percent to support stable inflation, but with rising pressures the balance of risks to the economic outlook “has shifted to the downside”.
While ongoing low interest rates and increased government spending is expected to support economic growth in 2019, employment is near its maximum sustainable level, and the global economic outlook continues to weaken—putting rising pressure on the New Zealand dollar.
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