The Reserve Bank’s decision to hold the OCR at 1.75% was expected, but economists are surprised at its projection the OCR will remain on hold until late 2019.
ASB chief economist Nick Tuffley said the key point in today’s announcement was that the events of the last few months haven’t had an impact on Reserve Bank’s OCR outlook. Despite positive inflation outcomes and a pick-up in inflation expectations they are sticking to their neutral stance, he said. “The Reserve Bank’s OCR outlook was unchanged from February’s MPS, still implying a late 2019 tightening
An official cash rate cut this week would come as a major surprise to all economists.
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Interest rates look set to remain low for some time following a Reserve Bank OCR announcement this morning which was as expected and determinedly neutral, according to economists.