OCR kept at 1 percent

The Reserve Bank has held its benchmark interest rate at a record low, but signalled it will cut it if the impact of the coronavirus threatens the economy.

The Official Cash Rate was kept steady at 1.0 percent, as expected.

Economists had expected no change to rates.

Reserve Bank governor Adrian Orr said economic growth is showing signs of improved activity.

He said the impact of the coronavirus has raised uncertainty at home and abroad, but is expected to be short lived.

However, Orr said policy can be adjusted if the impact looks more deep-seated and longer lasting.

The New Zealand dollar gained nearly half a cent against the US dollar after the decision, settling at around 64.6 US cents.

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

We value fearless, independent journalism. We hope you do too.

Newsroom has repeatedly broken big, important national news stories and established a platform for quality journalism on issues ranging from climate change, sexual harassment and bullying through to science, foreign affairs, women’s sports and politics.

But we need your support to continue, whether it is great, small, ongoing or a one-off donation. If you believe in high quality journalism being available for all please click to become a Newsroom supporter.

Become a Supporter


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