OCR on hold

  • Global growth deteriorating
  • Very cheap interest rates internationally; some countries with negative rates.
  • Financial market volatility has eased in recent weeks, but this could change at
  • any time.
  • Domestically: strong inward migration, construction activity, tourism, cheap
  • interest rates. Also export prices for have slightly improved, but are below
  • break-even levels for most farmers.
  • Exchange rate remains high
  • Indications house prices picking up again in Auckland.
  • House prices increases have spread to regional areas, especially those close to
  • Auckland.
  • Headline inflation still low, mostly due to low fuel prices.
  • Annual core inflation remains within the target range.