OCR to remain at 1.75 percent until 2020
The OCR will remain unchanged at 1.75 percent. The Reserve Bank continues to forecast no likely change before 2020.
In the announcement today the Reserve Bank Governor Adrian Orr said they are expecting low interest rates and government spending to encourage GDP growth.
The Bank intends to continue with its supportive monetary policy in order to keep the OCR at an expansionary level. This is likely to maximise sustainable employment and maintain the stable consumer price inflation, which remains below the target mid-point of 2 percent.
Other key points from the Monetary Policy Statement:
- Low interest rates are needed to support economic growth and inflation
- Tailwinds from a strong global economy are easing
- Economic growth is supporting job creation
You can read more on the OCR announcement and latest Monetary Policy Statement on the Reserve Bank website.