Reserve Bank Of NZ Leaves Interest Rate At 2.50%

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The Reserve Bank of New Zealand Thursday left its benchmark interest rate unchanged at 2.50 percent,

In a statement accompanying the rate decision, RBNZ Governor Alan Bollard said "The New Zealand economy continues to recover," and noting no sign of runaway inflation on the horizon.

Bollard noted that improved export earnings "have seen a pickup in household spending," although households remain cautions. Credit growth was "subdued," Bollard said, and "Business spending remains weak."

Bollard's statement indicated the RBNZ sees no immediate threat from inflation. "Annual CPI inflation is currently at the centre of the target band, and is expected to track comfortably within the band over the medium term."

Bollard also noted a continued recovery in global economic activity, pushing New Zealand's export commodity prices higher.

(Market News Provided by RTTNews)