Top economists are warning potential home buyers to proceed with caution as another bank drops its variable mortgage rate to the lowest in 40 years.

Allan Bollard reiterates the OCR will remain "at or below the current level through until the latter part of 2010."

The strong kiwi dollar is a threat to a sustained recovery, says Reserve Bank Governor Alan Bollard, while keeping rates steady.

Alan Bollard has warned about the economy's imbalances threatening any long term recovery, but he's done nothing about it.

The Reserve Bank has done what most market watchers were expecting this morning and left the official interest rate unchanged at 2.5 per cent.