we expect to keep the OCR at this level through 2019 and 2020.

employment is near its maximum sustainable level.

core consumer price inflation remains below our 2 percent target mid-point, necessitating continued supportive monetary policy.

sees annual CPI 1.7 pct by march 2020

keep cash rate expansionary for considerable period

risk of a sharper downturn in trading partner growth has heightened

upside and downside risks to inflation

despite the weaker global impetus, we expect low interest rates and government spending to support a pick-up in New Zealand’s GDP growth over 2019.

low interest rates, and continued employment growth, should support household spending and business investment.

government spending on infrastructure and housing also supports domestic demand.

we will keep the OCR at an expansionary level for a considerable period to contribute to maximising sustainable employment, and maintaining low and stable inflation.