OCR kept at 1 percent

The Reserve Bank has left its benchmark interest rate on hold at a record low 1 percent but indicated the door is open to further cuts

Reserve Bank governor Adrian Orr said economic growth is still solid but slowing while the headwinds at home and abroad are rising.

Orr said interest rates could be expected to stay low for longer, and there was scope for more stimulus if needed.

The bank surprised economists last month with a half percentage point cut to the cash rate, which was aimed at encouraging spending and investment to boost the economy.

This article was originally published on RNZ and re-published with permission.

Help us create a sustainable future for independent local journalism

As New Zealand moves from crisis to recovery mode the need to support local industry has been brought into sharp relief.

As our journalists work to ask the hard questions about our recovery, we also look to you, our readers for support. Reader donations are critical to what we do. If you can help us, please click the button to ensure we can continue to provide quality independent journalism you can trust.


Newsroom does not allow comments directly on this website. We invite all readers who wish to discuss a story or leave a comment to visit us on Twitter or Facebook. We also welcome your news tips and feedback via email: Thank you.

With thanks to our partners