Record low official cash rate unchanged

  • 22/06/2017
Graeme Wheeler
Reserve Bank governor Graeme Wheeler. Photo credit: Getty

The Reserve Bank has kept the official cash rate at its record low of 1.75 percent.

Bank governor Graeme Wheeler confirmed the widely anticipated move on Thursday morning.

The central bank said while the global economy was growing faster and becoming more broad-based, on-going surplus capacity and "extensive political uncertainty" remained challenges.

It said despite GDP growth for the March quarter being lower than expected, New Zealand's economic outlook was positive, driven by population growth, monetary policy and high terms of trade.

"Recent changes announced in Budget 2017 should support the outlook for growth," it said in a statement.

"Monetary policy will remain accommodative for a considerable period."