RBNZ leaves interest rate unchanged at 1.75%, says rates to stay expansionary for considerable period

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.