OCR cut no surprise

Reserve Bank governor Graeme Wheeler reduced the OCR by 25 basis points to a historic low of 1.75%, citing weak global inflation and upward pressure on the New Zealand dollar as reasons.

He also said that monetary policy will remain accommodative due to numerous uncertainties.

ASB chief economist Nick Tuffley said the OCR cut and the Reserve Bank’s accompanying statement were very much in line with their expectations.

“They said, essentially, that they have done enough at this stage. But that various uncertainties mean the risk of future action next year remains.