WELLINGTON, Sept 10 (Reuters) - New Zealand's central bank left its official cash rate unchanged at a record low 2.5 percent on Thursday, restating its pledge to hold rates at or below this level well into next year as the economy emerges from recession.
It was the third consecutive review in which the RBNZ has held rates steady, after it cut seven times between July last year and this April by a total of 575 basis points to counter the slowdown.
The RBNZ said further small cuts were still possible and it expected to keep the cash rate at its current level or lower until the latter part of 2010.
Sixteen of 17 economists in a Reuters poll had picked no change to the rate, with one forecasting a 25 basis point cut.
The central bank is required to keep inflation, which slowed to 1.9 percent in the year through June, within a 1 percent to 3 percent range on average over the medium term.
The New Zealand economy has been in recession since the start of 2008, but is expected to return to positive growth in the last quarter as house prices, retail sales, migration and building consents, have shown signs of recovery.
New Zealand's cash rate compares with official rates of 3.0 percent in Australia, 0.1 percent in Japan, 1 percent in the euro zone, and 0-0.25 percent in the United States.
The RBNZ will next review the cash rate on Oct 29.
((Wellington newsroom tel 64 4 471 4234, fax +64 4 4736 212,
wellington.newsroom@reuters.com )) Keywords: NEWZEALAND ECONOMY/RATES (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
It was the third consecutive review in which the RBNZ has held rates steady, after it cut seven times between July last year and this April by a total of 575 basis points to counter the slowdown.
The RBNZ said further small cuts were still possible and it expected to keep the cash rate at its current level or lower until the latter part of 2010.
Sixteen of 17 economists in a Reuters poll had picked no change to the rate, with one forecasting a 25 basis point cut.
The central bank is required to keep inflation, which slowed to 1.9 percent in the year through June, within a 1 percent to 3 percent range on average over the medium term.
The New Zealand economy has been in recession since the start of 2008, but is expected to return to positive growth in the last quarter as house prices, retail sales, migration and building consents, have shown signs of recovery.
New Zealand's cash rate compares with official rates of 3.0 percent in Australia, 0.1 percent in Japan, 1 percent in the euro zone, and 0-0.25 percent in the United States.
The RBNZ will next review the cash rate on Oct 29.
((Wellington newsroom tel 64 4 471 4234, fax +64 4 4736 212,
wellington.newsroom@reuters.com )) Keywords: NEWZEALAND ECONOMY/RATES (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.