Reserve Bank keeps official cash rate at 5.5%

The Reserve Bank has held the official cash rate steady, as expected, and reiterated rate cuts are a long way off.

The benchmark rate was left unchanged at 5.5 percent for a third meeting in a row.

• First published by RNZ

The central bank says inflation is falling as the economy slows and labour market pressures ease, but core inflation is stubborn and interest rates need to stay high for a prolonged period.

Forecasters had overwhelmingly expected the cash rate to be held.

More to come