WELLINGTON: New Zealand's central bank left the official cash rate (OCR) unchanged at 2.5 percent Thursday, warning the economic outlook remained uncertain following the Christchurch earthquake in February.
The Reserve Bank of New Zealand said business confidence, consumer spending and tourism had all declined sharply after the 6.3-magnitude tremor, which devastated New Zealand's second largest city and killed more than 180 people.
Central bank governor Alan Bollard, who slashed interest rates by 0.5 points last month in response to the disaster, said other factors were also weighing on the economy.
‘Higher oil prices and the elevated level of the New Zealand dollar are both unwelcome. They will have some dampening effect on economic activity,’ he said.
He added: ‘The current level of the OCR is likely to remain appropriate for some time.’
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