OCR on hold

The official cash rate has been left at 1.75 per cent, with the Reserve Bank warning the construction sector may be slowing.

In a move widely expected by financial markets, acting governor Grant Spencer left the benchmark rate unchanged, but appeared to point to a slight softening in the economy.

The economy was expected to continue to grow “at its current pace” in recent months and “construction was weaker than expected”. In its previous update the Reserve Bank had predicted that growth would accelerate.

MAARTEN HOLL/FAIRFAX MEDIA

The Reserve Bank may need to change its view on the housing market.

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