New Zealand holds interest rate steady. | CountingPips Forex & Currency Trading Blog

April 23, 2008 - Forex Economic News

New Zealand holds interest rate steady.

The Reserve Bank of New Zealand chose to keep its interest rate unchanged at 8.25 percent today according to a government release. The Bank noted that the economy of New Zealand is weakening but the concern for containing inflationary pressures is still the major factor in keeping the rate steady. The Bank has kept the interest rate at 8.25 percent since July 2007 when it was increased from 8 percent. Reserve Bank Governor Alan Bollard stated in the report that "short term inflation is likely to remain persistently high, due in large part to repeated increases in food and energy prices." Bollard also commented in the report on the NZ economy and said, "Economic activity has weakened more markedly than expected in the Bank’s March Monetary Policy Statement. There have been sharp falls in consumer and business sentiment, exacerbated by tighter credit conditions, a further decline in the housing market and weaker prospects for world growth. Financial market turbulence around the world continues to add to an uncertain economic environment."

Tags: new zealand interest rate, nzd, alan bollard

Blog Home