PHOTO: Reserve Bank Governor Adrian Orr. Source: 1 NEWS
The Reserve Bank has held the official cash rate (OCR) at a record low 0.25 per cent, as expected, and repeated it will press on with stimulatory monetary policies to support the economy from the pandemic.
It acknowledged the economy has performed better than expected but said recovery here and around the world was uneven and the outlook uncertain, as it would take time for Covid-19 vaccination programmes to have an effect.
“Economic activity in New Zealand picked up over recent months, in line with the easing of health-related social restrictions. Households and businesses also benefited from significant fiscal and monetary policy support, bolstering their cash-flow and spending,” it said in a statement.
“This ongoing uncertainty is expected to constrain business investment and household spending growth. ”
The RBNZ’s monetary policy committee said the central bank was still short of reaching its targets of sustainable employment and inflation about 2 per cent, and that would mean it would stick with its $100 billion bond buying programme, which aims to keep pressure on interest rates.
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