Low interest rates set to continue
The Reserve Bank kept the OCR on hold at its historic low of 1.75% and retained a neutral bias – but suggested that the OCR’s next move could be either up or down.
Acting Governor Grant Spencer says that monetary policy will remain accommodative for a considerable period as numerous uncertainties remain and policy may need to adjust accordingly.
That means that, depending on what unfolds on the domestic and global economic front, there is no guarantee that OCR hikes are looming.
Economists expressed little surprise at the Reserve Bank’s call – although many say they now expect to see the OCR on hold for longer than they have previously forecast before it starts to rise.
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