RBNZ votes for rate to remain
(27th January 2011 – New Zealand) New Zealand's central bank on Thursday kept its benchmark interest rate unchanged at 3 percent for a fourth consecutive policy meeting.
The decision was widely expected by analysts after New Zealand's economy recorded a surprise contraction in the September quarter of 2010.
Announcing the decision, Reserve Bank of New Zealand Governor Alan Bollard suggested interest rates will remain low for some time yet as the economy struggles to build momentum.
'While interest rates are likely to increase modestly over the next two years, for now it seems prudent to keep the OCR [official cash rate] low until the recovery becomes more robust and underlying inflationary pressures show more obvious signs of increasing,' Bollard said.
Announcing the decision, Reserve Bank of New Zealand Governor Alan Bollard suggested interest rates will remain low for some time yet as the economy struggles to build momentum.
'While interest rates are likely to increase modestly over the next two years, for now it seems prudent to keep the OCR [official cash rate] low until the recovery becomes more robust and underlying inflationary pressures show more obvious signs of increasing,' Bollard said.
Subscribe