PHOTO: ROBERT KITCHIN/STUFF Reserve Bank Governor Adrian Orr. The central bank left the OCR unchanged on Wednesday but said a lower rate “may be needed”.
New Zealand’s economy is turning out to be weaker than the Reserve Bank expected, raising the odds that it will cut interest rates further.
On Wednesday the Reserve Bank left the official cash rate (OCR) unchanged at 1.5 per cent, but the monetary policy committee said a further help from interest rates to boost the economy “was likely to be necessary”.
The committee did discuss cutting interest rates this month, but opted to wait.
Economists had expected interest rates would be left unchanged on Wednesday, with attention focused on what it would do next.
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