OCR unchanged at 2.5 percent - Te Pūtea Matua
Central bank: rbnz | Type: statement | Date: 2012-07-01

OCR unchanged at 2.5 percent
Published:
26 July 2012
The Reserve Bank today left the
Official Cash Rate (OCR) unchanged at 2.5 percent.
Reserve Bank Governor Alan Bollard said: "New Zealand's economic
outlook remains consistent with that described in the June
Monetary Policy
"New Zealand's trading partner outlook remains poor, with several
euro-area economies in recession. There remains a limited risk that conditions
in the euro area deteriorate very significantly. The Bank continues to monitor
the situation carefully given the potential for rapid change.
"Domestically, the Bank continues to expect economic activity to grow
modestly over the next few years. Housing market activity continues to increase
as forecast, and repairs and reconstruction in Canterbury are expected to
further boost the construction sector. Offsetting this, fiscal consolidation
and the exchange rate are constraining demand growth.
"Underlying annual inflation, which recently moved below 2 percent, is
expected to settle near the mid-point of the target range over the medium term.
"It remains appropriate for the OCR to be held at 2.5
Media contact:
Mike Hannah
Head of Communications
Ph 04 4713671, 021
mike.hannah@rbnz.govt.nz