The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.5 percent. The downside risks around global growth have receded in recent months, and financial market sentiment has improved. Domestically, the economic recovery is uneven. While demand and output are expanding, the labour market remains weak. Economic growth and inflation are being shaped by a range of forces. The Canterbury rebuild is gaining momentum and residential investment and business and consumer confidence are increasing. House price inflation is increasing and the Bank does not want to see financial stability or inflation risks ... (full story)