OCR to Stays the Same

July 30, 2009 New Zealand Finance  No comments

The New Zealand Official Cash Rate experienced no cuts or additions in its 30th of June review.

For the second review in a row Reserve Bank Governor Alan Bollard has opted not to increase the Official Cash Rate (OCR) of New Zealand. The change came as no big surprise to commentators or market participants, with no movements of particular note to be seen on the foreign exchange or equity market.

In regards to the decision, Alan Bollard, in a Reserve Bank release said “Despite signs of a leveling off in economic activity, the economy remains weak. We continue to expect to see a patchy recovery get underway toward the end of the year, but it will be some time before growth returns to healthy levels.” He went onto say that while most factors seemed to be close to the June Monetary Policy Statement estimates, the level of the New Zealand dollar was cause for some concern at the current time.