Reserve Bank holds official cash rate at 2.75 percent in 4-3 vote

The Reserve Bank has held the official cash rate (OCR), its benchmark interest rate, at 2.75 percent in a 4-3 vote of its rate-setting committee. Economists had widely expected a rise to 3 percent before the decision. Annual inflation was 3.7 percent at the time, above the bank's 1 to 3 percent target range.