RBNZ Maintains OCR at 2.25%

By Sophia Rodrigues

The Reserve Bank of New Zealand left the Official Cash Rate unchanged at 2.25% but signalled it is prepared to lift the rate if its inflation goal is at risk.

"Decisive and timely increases in the OCR would be required," the RBNZ said, if conditions for core inflation and wage growth, and inflation expectations are unlikely to be met.

The decision was unanimous.

"The Committee’s decision to hold the OCR balances the potential benefits of responding pre-emptively to the risk of higher medium-term inflation against the cost of unnecessarily stifling the economic recovery," the RBNZ said.