The OCR – the Official Cash Rate – remains unchanged at 3 per cent following the latest announcement by the Reserve Bank.

Reserve Bank Governor Alan Bollard warned downside risks to the outlook for global growth will continue, with high public and private debt slowing recovery in developed economies.  But offsetting the weakness was strong growth in China, Australia and emerging Asia.

Here at home, he say, despite soft economic data, continued high export prices, along with reconstruction in Canterbury, will support the economy over the coming year.

ASB rural economist James Shortall says economists expected the bank to leave the benchmark interest rate at 3%, despite the latest inflation figures moving slightly higher than the Reserve Bank forecast.