What economists are saying

Deutsche Bank says the decision to hold the OCR at 2.5% was expected. It says the crucial part of the announcement was the central bank's assertion that it expects "to keep the OCR at or below the current level through until the latter part of 2010".

Deutsche Banfk highlights the Reserve Bank's view on the economy and while there are some "green shoots" economic growth in New Zealand will begin toward the end of this year but "the recovery is likely to be slow and fragile."

With regards to future interest moves Deutshce Bank says the RBNZ forecasts imply that the projected low in the OCR is 2.5%, with the first lift in the OCR coming at the end of 2010.

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