New Zealand Central Bank Maintains Benchmark Interest Rate at 0.25%

[Asia Economy Reporter Yujin Cho] The Reserve Bank of New Zealand (RBNZ) on the 24th (local time) kept the official cash rate unchanged as expected and maintained the current level of asset purchases.

In a statement released after the regular monetary policy meeting, the RBNZ announced that it would keep the official cash rate at 0.25% and maintain the size of the Large Scale Asset Purchase (LSAP) program at 100 billion New Zealand dollars.

The RBNZ stated that it decided unanimously to keep the official cash rate unchanged until inflation and employment conditions reach the expected levels.

The RBNZ explained, "We have agreed to maintain the current monetary policy until the consumer price inflation rate stabilizes around the target level of 2% and there is confidence in employment figures," adding, "Meeting these requirements will require considerable time and patience."

Meanwhile, the New Zealand dollar to US dollar exchange rate showed weakness, falling 0.2% to 0.7359 dollars following the RBNZ announcement.