New Zealand's central bank decided to hold its benchmark rate unchanged, as widely expected, on Wednesday.
The Monetary Policy Committee of the Reserve Bank of New Zealand maintained the Official Cash Rate at 5.50 percent. The committee decided to keep the interest rate at a restrictive level to ensure that inflation returns to the 1 to 3 percent target range and to support maximum sustainable employment.
Policymakers observed that there is a near-term risk of activity and inflation not slowing as much as needed. Further, a greater slowdown in global economic demand, particularly in China could damp commodity prices and in turn export revenue.
