Reserve Bank holds OCR at 5.5%

The official cash rate has been held steady at 5.5% in the Reserve Bank's second review of the year.

The Reserve Bank of New Zealand reviews the OCR seven times per year. It's the central bank's main tool for controlling inflation.

It's the sixth time the rate has been held at 5.5%.

Speaking on the update, RBNZ said economic growth remains weak, but is evolving as anticipated by the Monetary Policy Comittee.

“Current consumer price inflation remains above the Committee’s 1% to 3% target range. A restrictive monetary policy stance remains necessary to further reduce capacity pressures and inflation."

“Globally, while there are differences across regions, economic growth remains below trend and is expected to remain subdued.

More on this topic

Explainer

A beginner's guide to the OCR and how it affects you

Ever nodded your head along when you listen to people discussing the OCR but not really understood what it means or what it does? Then this is the guide for you.

New Zealand

February 27, 2024

“However, most major central banks are cautious about easing monetary policy given the ongoing risk of persistent inflation.”

While some near-term price pressures remain, RBNZ said the committee is confident that maintaining the OCR at a restrictive level for a sustained period will return consumer price inflation to within the 1% to 3% target range this calendar year.