Photo: ODT filesThe Reserve Bank has retained the official cash rate (OCR) at 1%. In a statement this afternoon the central bank said employment remains around its maximum sustainable level while inflation remains below the 2% target mid-point but within the bank's target range. "Domestic economic activity is expected to increase during 2020 supported by low interest rates, higher wage growth, and increased government spending and investment. The low level of the OCR has flowed through to lower lending rates more generally, which support spending and investment." The Reserve Bank said that interest rates will need to remain at low levels for a prolonged period to ensure inflation reaches the mid-point of its target range with employment around its maximum sustainable level.

Source: Otago Daily Times November 13, 2019 01:19 UTC