Reserve Bank of New Zealand
more to come
- Demand growth in the economy continues to ease.
- Committee agreed
that the OCR needs to stay at a restrictive level - Interest rates are
constraining economic activity and reducing inflationary pressure
as required - While GDP growth in
the June quarter was stronger than anticipated, the growth outlook
remains subdued. - With monetary
conditions remaining restrictive, spending growth is expected to
decline further - Near-term risk that
activity and inflation do not slow as much as needed - Prolonged period of
subdued activity is required to reduce inflationary pressure
RBNZ Governor Orr
—
Background to this decision:
