Reserve Bank of New Zealand to Hold Rates in March

The Reserve Bank of New Zealand (RBNZ) held interest rates steady in its Official Cash Rate meeting in January and reaffirmed that they will remain low until the economic recovery gains momentum, hardening the view it will not resume rate rises until the middle of the year at the earliest.

The Reserve Bank of New Zealand (RBNZ) kept the official  cash rate (OCR) at 3 percent in its first rate review this year as expected, saying activity looked soft in the second half but the signs of a pick-up were consistent with its projections.

Economists have said there was no need for the RBNZ to resume rate rises anytime soon because the economic recovery was tepid and inflation under control.

Whilst underlying inflation remains comfortably inside the target band, forward indicators of activity have affirmed somewhat that the housing market looked to have stabilised after a lengthy decline

 The next RBNZ review will be on March 10, when it will issue a monetary policy statement with updated economic forecasts.

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