The official cash rate remains on hold at 2.25% despite many economists expecting it to be cut.

Reserve Bank Governor Graeme Wheeler noted that while global financial market volatility has lessened, the economy remains weak.

As a result of the decision, the kiwi dollar rose, hitting a 12 month high of just over US71c.

While customers don't borrow at the rate of the OCR, it has a direct influence on the interest rates on mortgages and the returns on bank deposits.