Reserve Bank Governor Alan Bollard is keeping the official cash rate at three per cent stating it needs to remain low until the economy is better recovered from recession.

The announcement came Thursday morning, with Alan highlighting in his speech that a secondary factor to keeping the OCR at three per cent was that the New Zealand dollar is high.

See weekly market video update with IRG BOP's Jonathan York below.

With limited domestic spending and a slow housing market, there was also further need realised not to push up interest rates.