The Reserve Bank of New Zealand left its official cash rate/OCR unchanged at a record low of 1%

The Committee noted that the coronavirus outbreak is an emerging downside risk, and assumed its impact would be short-lived, with most of the impacts in the first half of the year. The board mentioned that soft momentum in economic growth had continued into early 2020, but it expected to accelerate over the second half of the year, driven by monetary and fiscal stimulus and the high terms of trade. Policymakers added that there are indications that household spending growth will increase.

The Committee said that there is time to adjust monetary policy if the impact of the outbreak threatens the economy.