OCR could go up or down in 2021: RBNZ Governor

It comes as the central bank revealed its latest OCR decision and Monetary Policy Statement today. The OCR remains at a record low of 1.75%, and the Governor predicts it will stay that way until 2021. 

"We expect to keep it at that level throughout 2019 and 2020," Orr told a press conference this afternoon. "Employment is near maximum sustainable levels, however our consumer price inflation and core inflation remains below the midpoint of our 1-3% target range, and that necessitates the continued supportive monetary policy."

The central bank adopted a slightly more cautious tone on the OCR, reintroducing the phrase "the next move could be up or down". It comes as wholesale interest rate swaps trend down and banks continue to slash mortgage rates. 

Orr predicts the OCR will be on hold for a "long period" of time. He said he did "not share" the views of ANZ economists, who predict the OCR will fall to 1% next year.