WELLINGTON: New Zealand’s central bank left its base rate at a record low of 1.75 percent Thursday, saying long-term inflation forecasts remained on target.
The Reserve Bank of New Zealand said the Official Cash Rate (OCR) was unlikely to move in the short term.
“The growth outlook remains positive, supported by accommodative monetary policy, strong population growth, and high terms of trade,” central bank governor Graeme Wheeler 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.
“Monetary policy will remain accommodative for a considerable period,” Wheeler said.
He added the standard caveat that “numerous uncertainties remain and policy may need to adjust accordingly”.
The bank has an inflation target of 1.0-3.0 percent and Wheeler said long-term forecasts put price rises right in the mid-point at 2.0 percent.