In a widely expected decision, the Reserve Bank of New Zealand (RBNZ) has left its official cash rate unchanged at 1.75% and said that rates would expansionary for a considerable period. Below are the key highlights, via Reuters, from the monetary policy statement.
- Inflation to rise gradually to 2 pct target.
- Risks remain to our central forecast.
- Recent moderation in growth could last longer.
- Conversely, chance inflation could increase faster.
- Will look through volatility in headline inflation.
- Will only respond to persistent movement in inflation.
- Sees early signs of core inflation rising.
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