The Reserve Bank has kept the Official Cash Rate at three per cent in its latest announcement.

Bank Governor Alan Bollard increased the rate 25 basis points in June, and hinted the rise would be the start of an upward trend.

But Dr Bollard says the economic fallout from the Canterbury earthquake will force a ‘more moderate’ track for future rate increases.

ASB economist Chris Tennent-Brown says the hold can be put down to weak economic data, and is likely to last for a while yet.

"The economic outlook has softened somewhat. The external sector has got softer and households are just looking pretty subdued with retail sales not racing away and the housing market looking pretty soft as well."