No action expected on official cash rate
Thu, 25 Oct 2012 5:28a.m.
New Zealand's new Reserve Bank Governor is widely expected keep the official cash rate at 2.5 percent when he reviews the rate for the first time on Thursday.
Unions and opposition parties want the rate cut to help bring the New Zealand dollar down from its mark around 81.25 US cents, a rate which has made trading difficult for exporters and manufacturers.
But Graeme Wheeler, a former World Bank executive who took over from Alan Bollard last week, is not expected to do anything significant in his first look at the OCR.
None of the 15 economists polled by Reuters predicted a change in the OCR, which has sat at a historic low of 2.5 percent since March last year.
This comes despite the consumer price index rising just 0.3 per cent in the September quarter, taking the annual rate of inflation to 0.8 percent, well inside the bank's one to three per cent target inflation band.
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