RBNZ leaves interest rates unchanged at 1.00%, as expected

The Monetary Policy Committee agreed that the new information following the Monetary Policy Declaration in August did not guarantee a significant change in monetary policy prospects.

Employment is around its maximum sustainable level

Inflation remains within our target range

Global trade and other political tensions remain inflated and continue to undermine global growth prospects, reducing demand for goods and services in New Zealand.

Business confidence remains low

Global long-term interest rates remain close to historically low levels, in line with low expected inflation and future growth rates

It can therefore be expected that interest rates in New Zealand will be low for longer

The OCR reduction this year lowered retail interest rates for households and businesses and eased the New Zealand dollar exchange rate.

Keeping OCR at low levels is necessary to ensure that inflation rises to the midpoint of the target range, while employment remains around its maximum sustainable level.

There is room for more fiscal and monetary stimulus, if necessary, to support the economy and support our inflation and employment goals.

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