The Official Cash Rate is set for a sustained period, at least at its current level

The Reserve Bank has held the OCR at 5.5 percent -- and its forecast track suggests no rate cuts on the horizon until mid-2025.

Governor Adrian Orr warns if inflation pressures are stronger than anticipated, the rate would likely need to increase.

He says demand growth has eased, but by less than expected over the first half of the year.

Orr says the OCR will need to stay at a restrictive level so demand growth remains subdued, and inflation returns to the one to three percent target range.