Reserve Bank deputy governor Geoff Bascand

PHOTO:THE-DOMINION-POST Reserve Bank deputy governor Geoff Bascand says he is not sure why doubts are still floating around the bank’s OCR commitment, given its “clear statement”.

The Reserve Bank has doubled down on its promise to keep the official cash rate steady at 0.25 per cent until March, saying it is not sure why some analysts believe it may send the OCR negative before then.

Governor Adrian Orr made the commitment to keep the OCR on hold for a year on March 16, at the same time that the Reserve Bank slashed the OCR by 75 basis points to 0.25 per cent.

Questioned on the nature of the commitment at the time, Orr made it clear he was giving the Reserve Bank’s word to keep the OCR on hold until at least March next year.

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“The commitment stands here. It is the Reserve Bank’s word,” he said at a press conference then.

If the Reserve Bank needed to apply an additional monetary stimulus before then, it would use other tools he added.