The official cash rate will be held at 5.5%, the Reserve Bank has announced, in line with economist forecasts.
The move is the second time the central bank has decided to hold the OCR steady after it halted 18 months of rate hikes at its last meeting in July.
Last week, Westpac economists said this month's review would be another "'steady as she goes' affair" with forecasters unanimous that the OCR would be held stable today.
However, there's disagreement about whether further rate hikes are likely before the end of the year. Economists from two retail banks believe that inflation will subside more slowly than previously predicted, with another OCR hike possible in November.
Meanwhile, many Kiwi homeowners are continuing to face higher mortgage rates alongside increased prices for food and other living expenses.
My Money mortgage adviser Stephen Robertson told 1News today that he had seen a rise in the number of people who were struggling to pay off their mortgages. He suggested that homeowners should look at their options sooner — rather than later.
"Don't wait until you're hit with a surprise. Start looking at it well before," he said.
"If you've got a rate rise coming up and you're facing that cost, get in touch early, don't wait until you're suddenly wondering: 'Where am I going to find it?'"
"You're starting to see the rise in the use of credit cards, Afterpay, and that kind of short-term credit solution — which is only pushing the problem further down the road.
It's all people are talking about, but what is the OCR and how does it impact the lives of New Zealanders? (Source: 1News)
"If there's another rise in the cash rate and the banks pass it on, people will be wondering what they can do".
Economist forecasts - another hike possible?
ANZ chief economist Sharon Zollner said last week: "Unfortunately, we suspect that inflation is going to prove much harder to push down once lower global goods disinflation has worked it way through.
"Accordingly, we have another 25 basis point hike in November built into our forecasts, with the clear risk being that that isn’t the end of it."
Zollner continued: "We are sceptical that a 5.5% OCR is enough to bring inflation back down to target in an acceptable time frame as things stand.
"But things never stand still. One risk we're thinking about: there is a lot more to financial conditions than just the OCR, and global factors are not under the RBNZ's control."
Meanwhile, BNZ chief economist Stephen Toplis said it was "absolutely" possible for rates to be hiked again, but that they weren't yet picking another rise in November.
"Could the RBNZ hike interest rates again? Absolutely," Toplis wrote.
"If, post-election, wage growth remains strong, non-tradables inflation proves sticky, inflation expectations are elevated and the incoming government delivers a major fiscal stimulus then the RBNZ could well swing back into action.
"For the bank to recommence the tightening cycle it would have to be pretty sure inflation was a problem. If the RBNZ pulls the trigger then expect a minimum of two hikes and quite possibly more… But the risk profile is not one-sided.
"Just as plausible is a New Zealand economy that goes more deeply into recession than we anticipate as lagged interest rate impacts coincide with a US recession, a further slowing in China's economy, weak commodity prices and an El Nino induced drought.
"Under this scenario an easing in monetary conditions will come a lot earlier than currently expected."
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