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.

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