OCR Maintained at 2.5%

July 25, 2013 New Zealand Taxation

[mb] QuartersThe OCR has been left unchanged yet again, for the 18th time in a row.

The Reserve Bank announced today that the New Zealand Official Cash Rate (OCR) has been left at 2.5 percent at it latest review.

The Governor of the Reserve Bank Graeme Wheeler explained that the rate remained unchanged as the economic conditions in New Zealand and among its major trading partners has not yet grown and stabilized enough to warrant an increase to the rate.

Explaining the economic situation in New Zealand, the Governor said that consumer consumption and business activity is showing signs of picking up across several sectors, and there is also indication that activity in the construction sector is also on the rise.

However, the economic outlook across the rest of the world remains mixed, with signs of slowing growth in China and Australia.

Graeme Wheeler noted that inflation levels in New Zealand have been exceptionally low over the last year, but should rise in the foreseeable future.

Photo by Merrick Brown