RBNZ keeps interest rates on hold at 1.75%

The Reserve Bank of New Zealand (RBNZ) announced that it would leave the official cash rate (OCR) unchanged at 1.75%, in a decision that was widely expected, noting that the policy would remain accommodative for a considerable period.

Key highlights (via Reuters):

• Numerous uncertainties remain and policy may need to adjust accordingly
• Longer-term inflation expectations remain well-anchored at around 2 percent
• Expect future headline inflation to reach the midpoint of the target band over medium term
• Lower NZ$ would help the economy
• Global growth continues to improve
• Q2 GDP grew in-line with expectations
• Growth to maintain current pace going forward
• House price inflation continues to moderate
• There remains a risk of resurgence in house prices
• Domestic growth is projected to maintain its current pace going forward