New Zealand’s central bank left the official cash rate at a record low of 1.75 percent

News Hour:

New Zealand’s central bank left the official cash rate at a record low of 1.75 percent on Thursday amid moderate inflation and healthy economic growth.

The Reserve Bank of New Zealand said the monetary policy was set to “remain accommodative for a considerable period” barring unforeseen circumstances, reports BSS.

“Growth is projected to maintain its current pace going forward, supported by accommodative monetary policy, population growth, elevated terms of trade, and fiscal stimulus,” acting governor Grant Spencer said.

The base rate has remained unchanged since November last year when it was cut from 2.0 percent, and analysts do not expect any movement until mid-2018 at the earliest.

Annual inflation was 1.7 percent in the year to June 30 and Spencer said was forecast to hit 2.0 percent in the long term, the middle of the bank’s 1.0-3.0 target band.

Economic growth in the 12 months to the end of June was 2.7 percent and the economy has been tracking at about three percent for well over a year. Westpac economist Imre Speizer said the Reserve Bank’s stance had been widely anticipated.

“There’s not much here for markets to react to, apart from a hint of a possible downgrade to its construction industry forecast,” he said in a note to clients.


This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
No Comments

Translate this News

Join the Facebook Group

Click here to join the Facebook group of News Hour

Popular Posts

Sacred Games exposes Rajshri Deshpande nude [video]
Samsung Bangladesh announced exciting offers at Dhaka International Trade Fair 2019
Anurag Kashyap shoots Kubra Saith 7 times nude and made her cry for frontal nudity scene [Video]
Bangladeshi bodybuilder Hasib Mohammad banned after winning an international competition
Immigration: The search for a better way of life
Bank of America to recruit 50 bankers for its investment banking team in Asia


News of the Month

September 2017
« Aug   Oct »
Scroll Up
%d bloggers like this: