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 increased and become more broad-based over recent months. However, major challenges remain with on-going surplus capacity and extensive political uncertainty. Stronger global demand has helped to raise commodity prices over the past year, which has led to some increase in headline inflation across New Zealand’s trading partners. However, the level of core inflation has generally remained low. Monetary policy is expected to remain stimulatory in the advanced ... (full story)

The Reserve Bank of New Zealand (RBNZ) kept a steady hand on monetary policy, as officials voted to keep interest rates at rock bottom in support of inflation and economic growth. In its meeting on Thursday, the RBNZ held its official cash rate at 1.75%, where it has stood since November. While economic growth was slower than expected in the second half of 2016, “the growth outlook remains positive, supported by on-going accommodative monetary policy, strong population growth, and high levels of household spending and construction activity,” the Reserve Bank said in its May policy statement. The decision was widely ... (full story)