The Reserve Bank has left the OCR on hold.

It currently sits at 2.25 per cent - a record low for New Zealand. Six weeks ago the Bank surprised many when it cut rates. While another cut is expected soon, most analysts expect it to come later this year.

The market officially priced in just a 35 per cent chance of a cut to the official cash rate today while the chances of a cut at the full monetary policy statement on June 10 are put at 86 per cent.

Last month the Reserve Bank unexpectedly cut the cash rate taking the market by surprise.

The banks were slow to respond and most only passed on some of the 0.25 percentage point cut to floating and flexible home loan customers.

Economists are still picking the Reserve Bank to make further cuts this year because of pressure to get back inside its 1 per cent to 3 per cent inflation band.

Source: NZ Herald