OCR on hold: November cut expected

Leading economists say today's announcement to leave the OCR unchanged was in line with expectations. The central bank left the door open to "more fiscal and monetary stimulus", however.

Economists say the decision to slash rates by 50 basis points in August made a further cut unnecessary this time around. 

Stephen Toplis, head of research at BNZ, said today's announcement was "almost identical to what we had anticipated".

Toplis added: "The Reserve Bank governor was on record as saying that the drop of 50 basis points allowed them to get ahead of the market, and reduced the need for more cuts later ... They have maintained an easing bias, and our view is that November is the more likely timing for the next move."