New Zealand leaves base interest rate unchanged

[WELLINGTON] New Zealand's central bank left the official cash rate at a record low of 1.75 per cent on Thursday, shrugging off recent volatility on global stock markets.

"Equity markets have been strong, although volatility has increased recently," Reserve Bank of New Zealand Governor Grant Spencer said in a statement.

"Monetary policy remains easy in the advanced economies but is gradually becoming less stimulatory."

Looking beyond the recent roller-coaster ride on world equity markets, Spencer said "global growth continues to improve" and New Zealand GDP was expected to strengthen.

The base rate has remained unchanged since November 2017 year, when it was cut from 2.0 per cent, and Mr Spencer indicated it was unlikely to move anytime soon.

"Monetary policy will remain accommodative for a considerable period," he said, adding the standard rider: "Numerous uncertainties remain and policy may need to adjust accordingly."

AFP