OCR unchanged at 2.5 percent - Te Pūtea Matua
Central bank: rbnz | Type: statement | Date: 2010-01-01

OCR unchanged at 2.5 percent
Published:
28 January 2010
The Reserve
Bank today left the Official Cash Rate (OCR) unchanged at 2.5 percent.
Reserve Bank Governor Alan Bollard said: "The outlook for the New
Zealand economy remains consistent with the projections underlying the December
Monetary Policy Statement
"Global activity continues to recover, helping push New Zealand's
export commodity prices higher. Economic growth is most apparent in China,
Australia, and emerging Asia. However, sustained growth throughout our trading
partners is not assured, with many still facing impaired financial sectors and
overall activity still reliant on policy support.
"Similarly, the New Zealand economy continues to recover. Policy
stimulus and improving export earnings have seen a pickup in household spending.
That said, households remain cautious, with credit growth subdued. Business
spending remains weak.
"Annual CPI inflation is currently at the centre of the target band,
and is expected to track comfortably within the band over the medium term.
"The economy is being assisted by both monetary and fiscal policy
support. As growth becomes self sustaining, fiscal consolidation would help
reduce the work that monetary policy might otherwise need to do.
"If the economy continues to recover in line with our December
projections, we would expect to begin removing policy stimulus around the middle
Media contact:
Head of Communications
Ph 04 4713671, 021 497418,
mike.hannah@rbnz.govt.nz