OCR unchanged at 5.25 per cent

Wednesday, 3 October 2001, 9:59 am
Press Release: Reserve Bank

NEWS RELEASE Time Immediate

The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 5.25 per cent.

Reserve Bank Governor Don Brash said "The outlook for the world economy, and the likely impact on New Zealand's economy and inflation, remain highly uncertain. It is clear that the global economic outlook has deteriorated since the awful events of 11 September. We will inevitably feel some backwash from that, although our own economy appears to have been at least as robust before the attacks as we had previously expected.

"Our decision to cut the OCR by 50 basis points two weeks ago was a precautionary move that recognised the inevitable adverse effect and the likely impact on confidence. But how large those effects will be, and how long they will last, remains unclear. At this stage, it appears best to leave the OCR unchanged. We will have an opportunity for a fuller review of the outlook for economic activity and inflation, and the risks around that outlook, in our next Monetary Policy Statement, which will be released on 14 November," Dr Brash concluded.

ENDS

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