Investing.com - The Reserve Bank of New Zealand kept its benchmark interest rate unchanged for the eighth consecutive month in March, it announced on Thursday.
In a statement, the RBNZ said it keeping its benchmark interest rate unchanged at 2.50% in March, in line with market expectations.
In its accompanying rate statement, RBNZ Governor Alan Bollard said, “Sustained strength in the New Zealand dollar would reduce the need for further increases in the cash rate.”
Bollard added that, “Inflation has settled near the middle of the Bank’s target range, and inflation expectations have fallen.”
“Given the medium-term outlook for inflation, it remains prudent to hold the OCR at 2.5%.”
Following the decision, the New Zealand dollar was up against its U.S. counterpart, with NZD/USD gaining 0.59% to trade at 0.8213.
In a statement, the RBNZ said it keeping its benchmark interest rate unchanged at 2.50% in March, in line with market expectations.
In its accompanying rate statement, RBNZ Governor Alan Bollard said, “Sustained strength in the New Zealand dollar would reduce the need for further increases in the cash rate.”
Bollard added that, “Inflation has settled near the middle of the Bank’s target range, and inflation expectations have fallen.”
“Given the medium-term outlook for inflation, it remains prudent to hold the OCR at 2.5%.”
Following the decision, the New Zealand dollar was up against its U.S. counterpart, with NZD/USD gaining 0.59% to trade at 0.8213.