Reserve Bank of New Zealand cash rate left unchanged at 1%

  • Monetary Policy Committee agreed that new information since the August Monetary Policy Statement did not warrant a significant change to the monetary policy outlook.
  • Employment is around its maximum sustainable level
  • inflation remains within our target range
  • Global trade and other political tensions remain elevated and continue to subdue the global growth outlook, dampening demand for New Zealand's goods and services.
  • Business confidence remains low
  • Global long-term interest rates remain near historically low levels, consistent with low expected inflation and growth rates into the future
  • Consequently, New Zealand interest rates can be expected to be low for longer
  • The reduction in the OCR this year has reduced retail lending rates for households and businesses, and eased the New Zealand dollar exchange rate.
  • Keeping the OCR at low levels is needed to ensure inflation increases to the mid-point of the target range, and employment remains around its maximum sustainable level.
  • There remains scope for more fiscal and monetary stimulus, if necessary, to support the economy and maintain our inflation and employment objectives.

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