The Reserve Bank of New Zealand (RBNZ) on Thursday kept its official cash rate (OCR) on hold at a record-low 1.75 percent and said rates would stay at this level through 2019 and into 2020.
“There are both upside and downside risks to our growth and inflation projections. As always, the timing and direction of any future OCR move remains data-dependent,” said governor Adrian Orr in a statement accompanying the rate decision.
In its last meeting in September, RBNZ had said the interest rates would remain at the same level into 2020.
The New Zealand dollar initially spiked but then retreated to $0.6775. (Reporting by Charlotte Greenfield and Praveen Menon; Editing by Hugh Lawson)