WELLINGTON, June 28 (Xinhua) -- New Zealand Official Cash Rate (OCR) will remain at 1.75 percent for now, Reserve Bank Governor Adrian Orr said on Thursday.
The outlook for the New Zealand economy, as detailed in the May Monetary Policy Statement, remains intact, Orr said in a statement.
Employment is around its sustainable level and consumer price inflation remains below the two percent mid-point of the target, necessitating continued supportive monetary policy for some time to come, Orr said.
Global economic growth is expected to support demand for New Zealand products and services. Global inflationary pressure is also expected to be higher but remain modest. This outlook has been tempered slightly by trade tensions in some major economies. Ongoing volatility in some emerging market economies continues, he said.
Domestically, ongoing spending and investment, by both households and government, is expected to support growth. However, the recent weaker GDP outturn implies marginally more spare capacity in the economy than the government anticipated, Orr said.