The Reserve Bank of New Zealand held its OCR at 2.75 percent on October 28, with four members favouring a hold and three a 25-basis-point increase. Annual inflation slowed to 3.7 percent in the September quarter from 4.1 percent in June. The Committee nevertheless expects 4.4 percent in December, largely reflecting fuel futures prices. It says tighter policy is likely but conditional on the outlook, as domestic demand remains subdued and the economic recovery uneven.
Related currencies / asset groups: NZD
The hold majority favoured more time to assess the effects of recent increases and risks to the uneven recovery.
The Committee voted 4 - 3 to hold the OCR at 2.75 percent.
www.rbnz.govt.nzThe Committee says tighter monetary policy is likely to be required but remains conditional on the economic outlook.
www.rbnz.govt.nzThree members favoured an immediate rise because persistent core inflation could become entrenched.
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