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OCR left unchanged at 3.5pc

By: lifenloans on Oct 29, 2014

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent, and toned down the prospect of higher interest rates as inflation remains unexpectedly low. The New Zealand dollar fell.

“CPI (consumers price index) inflation is currently at a low level despite above-trend growth. However, inflation is expected to increase as the expansion continues,” Wheeler said in a statement. “A period of assessment remains appropriate before considering further policy adjustment.”

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