New Zealand keeps interest rate steady at 8.25%.

January 24, 2008 - Forex Economic News

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 growing and that concern for containing inflationary pressures was a major factor in keeping the rate steady. The Bank has kept the interest rate at 8.25 percent since July when it was increased from 8 percent. Reserve Bank Governor Alan Bollard said in the report that “The outlook for the New Zealand economy remains broadly consistent with the view outlined in the December Monetary Policy Statement. While the housing market continues to cool, the labour market remains tight, domestic income growth is still strong" but that "core inflationary pressures persist." Bollard further stated that, despite the consistency of the New Zealand economy, "the level of uncertainty has increased" going forward as he cited the volatility in the global financial markets and the "deterioration in the outlook for the United States and European economies."

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