RBNZ likely to maintain rates
(10 March 2010 – New Zealand) The Reserve Bank of New Zealand is widely anticipated to keep its benchmark interest rate at 2.50 percent this week, in an effort to balance the downside risks for the economy.
The New Zealand central bank kept borrowing costs at the record-low of 2.50 percent in January and pledged to keep the cash rate at its current level until the middle of the year as inflation is likely to remain within its target range until 2012.
Reserve Bank of New Zealand Governor Alan Bollard said that if the economy continues to recover in line with its December projections, policy stimulus could expect to be removed around the middle of 2010.
Mr Bollard added that the nation continues to recover and policy stimulus and improving export earnings have seen a pickup in household spending. Mr Bollard also added that a watchful outlook for the domestic economy is needed as households remain cautious, with credit growth subdued.
Reserve Bank of New Zealand Governor Alan Bollard said that if the economy continues to recover in line with its December projections, policy stimulus could expect to be removed around the middle of 2010.
Mr Bollard added that the nation continues to recover and policy stimulus and improving export earnings have seen a pickup in household spending. Mr Bollard also added that a watchful outlook for the domestic economy is needed as households remain cautious, with credit growth subdued.
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