RBNZ Leaves Interest Rate Unchanged

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New Zealand's official interest rate will remain unchanged at 2.50 percent.

The Reserve Bank of NZ announced Thursday that the Official Cash Rate (OCR) would hold steady at its record low level for a second straight month.

The move was widely anticipated by economic experts.

In a statement accompanying the rate decision, RBNZ Governor Alan Bollard said that despite signs of a leveling off in economic activity, the economy remains weak.

"We continue to expect to see a patchy recovery get underway toward the end of the year, but it will be some time before growth returns to healthy levels," Bollard said.

Bollard said that inflation was currently well within its target bands and this was not expected to change in the medium term.

The RBNZ has slashed the OCR by 5.75 percent since July of 2008.

(Market News Provided by RTTNews)