Reserve Bank of New Zealand Governor Alan Bollard kept the Official Cash Rate 
Bollard sticking to the script
Reserve Bank governor Alan Bollard stuck to the script in leaving interest rates unchanged and indicating he may start hiking about the middle of the year.
Bollard left his official cash rate (OCR), which helps determine floating mortgage rates and influences fixed rates, unchanged at a historically low 2.5% where it has sat since April last year.
"The chorus was set in January. It's not a particularly exciting song and they're just repeating the chorus," says Brendan O'Donovan, chief economist at Westpac.
The message is the economy is recovering but it's weaker than previous recoveries and, because of the depth of the hole the economy fell into, there's plenty of spare capacity and little inflation, O'Donovan says...MORE»
OCR unchanged, mid-year hike reiteratedThursday, March 11th, 9:01AM
Reserve Bank of New Zealand Governor Alan Bollard kept the Official Cash Rate unchanged at 2.5%, as expected, and reiterated a mid-year start to rate hikes, saying the subdued pace of recovery will restrain inflation. MORE» |
FULL SPEECH: OCR unchangedThursday, March 11th, 9:00AM
The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.5%. MORE» |
Market looks to Bollard for guidance on interest rates
Softer than expected inflation, retail sales and employment data and signs the housing market recovery has stalled will likely mean Reserve Bank governor Alan Bollard leaves interest rates unchanged on Thursday and he will reiterate the first rate hike is likely about mid-year.
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