WELLINGTON, April 24 The New Zealand central
bank held its benchmark cash rate steady at 2.5 percent on
Wednesday, as expected, and said it expected to hold rates for
the rest of the year as it saw inflation risks staying contained
even as economic growth picked up.
For the text of the Reserve Bank of New Zealand's (RBNZ)
latest statement click on.
All 17 analysts in a Reuters poll had expected no change at
this review, with five seeing a rise sometime between September
and December this year, and the remaining 12 looking at 2014.
In the March 14 monetary policy statement, the RBNZ pointed
to signs of improving domestic demand and global outlook, but
warned about increasing house price inflation and the financial
stability or inflation risks that might occur if demand gets too
far ahead of supply.
Financial market pricing before Thursday's decision implied
no chance of a 25 basis points rate move at this review, and 12
basis points of hikes over the next 12 months.
RBNZ governor Graeme Wheeler, appointed governor in
September last year, has said he will focus on keeping inflation
around 2 percent within the established 1-3 percent band, and
will look closely at inflation expectations and asset prices.