OCR unchanged at 2.5 percent

The Reserve Bank yesterday left the Official Cash Rate (OCR) unchanged at 2.5 percent.

The closing statement was β€œOn balance, it remains appropriate for the OCR to be held at 2.5 percent.”.

An explicit warning was aimed at the heated property market..”House price inflation has increased and we are watching this and household credit growth closely. The Bank does not want to see financial stability or inflation risks accentuated by housing demand getting too far ahead of supply.”