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Reserve Bank keeps the OCR at 1.75%, but acknowledges the weaker global and domestic economy and flags its next move will more likely be a cut
The Reserve Bank (RBNZ) has kept the Official Cash Rate (OCR) on hold at 1.75% as expected, but placed more emphasis on the slowing economy. Governor Adrian Orr has ditched his line the direction of the next OCR move "could be up or down," saying the "more likely direction" is down. Where he previously noted "upside and downside risks," he now says the balance of risks "has shifted to the downside". With gross domestic product (GDP) growth undershooting the RBNZ's forecasts in the December quarter, Orr says: "Domestic growth slowed in 2018, with softness in the housing market and weak business investment ... (full story)