Investing.com – The Reserve Bank of New Zealand kept its benchmark interest rate unchanged for the fifth straight meeting in October, it announced on Thursday.
In a statement, the RBNZ said it was keeping its benchmark interest rate unchanged at 2.50%, broadly in line with expectations.
Commenting on the decision, RBNZ Governor Alan Bollard said, “As foreshadowed at the time of the September Monetary Policy Statement, there is a real risk that the European sovereign debt crisis could cause a further slowing in global activity, putting downward pressure on New Zealand’s commodity export prices.”
Mr. Bollard continued, “Given the ongoing global economic and financial risks, it remains prudent to continue to keep the OCR on hold at 2.5% for now. However, if global developments have only a mild impact on the New Zealand economy, it is likely that gradually increasing pressure on domestic resources will require future OCR increases.”
Following the decision, New Zealand's dollar was up against its U.S. counterpart, with NZD/USD climbing 0.84% to trade at 0.8079.
In a statement, the RBNZ said it was keeping its benchmark interest rate unchanged at 2.50%, broadly in line with expectations.
Commenting on the decision, RBNZ Governor Alan Bollard said, “As foreshadowed at the time of the September Monetary Policy Statement, there is a real risk that the European sovereign debt crisis could cause a further slowing in global activity, putting downward pressure on New Zealand’s commodity export prices.”
Mr. Bollard continued, “Given the ongoing global economic and financial risks, it remains prudent to continue to keep the OCR on hold at 2.5% for now. However, if global developments have only a mild impact on the New Zealand economy, it is likely that gradually increasing pressure on domestic resources will require future OCR increases.”
Following the decision, New Zealand's dollar was up against its U.S. counterpart, with NZD/USD climbing 0.84% to trade at 0.8079.