The Reserve Bank of New Zealand kept interest rates unchanged at a record low of 1.75% with reference to its willingness to cut interest rates if necessary as economic growth slows and inflation remains below target.
Reserve Bank of New Zealand Governor Adrian Orr said interest rates would remain unchanged for now, but we are well placed to manage change in either direction by raising or lowering interest rates as necessary.
Orr said in May that interest rates will remain at their current level for some time and since then economic growth has been weaker than expected from the bank and business confidence has fallen to a seven-month low, adding that to signs that inflation will remain below mid-range target of 1-3%.
Expectations are that interest rates will remain at their current levels at 1.75% until the second half of 2019. Orr indicated in May that he did not expect to raise rates until late 2019.
