Bollard sticking to the script
Bollard left his official cash rate (OCR), which helps determine floating mortgage rates and influences fixed rates, unchanged at a historically low 2.5% where it has sat since April last year.
"The chorus was set in January. It's not a particularly exciting song and they're just repeating the chorus," says Brendan O'Donovan, chief economist at Westpac.
The message is the economy is recovering but it's weaker than previous recoveries and, because of the depth of the hole the economy fell into, there's plenty of spare capacity and little inflation, O'Donovan says.
The central bank's forecasts indicate the OCR is likely to be about 5.75% in three years time, he says.
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