RBNZ keeps a 2.5% interest rate

RBNZ announced on September 15 to keep a 2.5% interest rate, just as expected, the turbulent and unclear global economic prospect overrode the anxieties about the inflationary pressures.

Previously, most analysts being interviewed by Routers anticipated that the interest rate of RBNZ would remain the same, and would raise the rate in December.

RBNZ anticipates the average interest rate of bank bill within 90 days will be 2.90% in December 2012, 3.70% in June and 4.30% in December.

RBNZ chairman Alan Bollard suggested that keeping the same interest is in light of the global risks, if the global influence is slight, central bank will raise the rate. He pointed out that the overall NZ economy is stable, yet the global risk is increasing. If the global risk lasts, NZ financing cost would rise.

Alan Bollard also suggested that NZD exchange rate is dragging NZ economy, thus RBNZ has lowered the anticipation of NZ economy in 2012.

RBNZ will release another statement on interest rate in October 27.