The Reserve Bank left the Official Cash Rate (OCR) unchanged at 5.50% at its monetary policy review on Wednesday, ending almost two years of consecutive rate hikes. The Monetary Policy Committee had increased the OCR in every review since October 2021 before today. On Wednesday, it said global economic growth remained weak and inflation pressures were easing following significant monetary policy tightening. Sustainable house pricesThe committee said that house prices had returned to more sustainable levels after recent falls. “Higher net migration is supporting demand for housing but higher interest rates continue to exert downward pressure on housing demand,” it said.
