Statement by Reserve Bank Governor Graeme Wheeler: The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent. Global economic growth has become more broad-based in recent quarters. However, inflation and wage outcomes remain subdued across the advanced economies, and challenges remain with on-going surplus capacity. Bond yields are low, credit spreads have narrowed and equity prices are at record levels. Monetary policy is expected to remain stimulatory in the advanced economies, but less so going forward. The trade-weighted exchange rate has increased since the May Statement, partly in ... (full story)

The Reserve Bank has left the official cash rate at 1.75 per cent, a move widely expected by financial markets. The New Zealand dollar jumped, however, with the Reserve Bank still indicating it expects to begin raising the benchmark OCR from next year. Governor Graeme Wheeler said in a statement that economic growth was expected to pick up in the coming months, supported by strong net migration, low interest rates and spending outlined in the May Budget. But Wheeler, who leaves the job next month, said headline inflation was likely to decline and the outlook for tradables inflation was weak. READ MORE: OCR may stay ... (full story)