NZ central bank holds rates amid global mkt turmoil
Friday, 14 September 2007
WELLINGTON, Sept 13 (AFP): New Zealand's central bank kept interest rates on hold today following four successive rises, citing the recent turmoil in global financial markets.
Reserve Bank of New Zealand Governor Alan Bollard said the official cash rate would remain at 8.25 per cent, one of the highest rates in the developed world.
"Credit concerns and heightened risk aversion have led to significant turbulence in global financial markets," Bollard said.
"This development increases the likelihood of a weaker economic outlook for the United States and New Zealand's other key trading partners than in recent forecasts."
Nevertheless, inflation pressures remain and Bollard gave no indication that interest rates would fall anytime soon.
Reserve Bank of New Zealand Governor Alan Bollard said the official cash rate would remain at 8.25 per cent, one of the highest rates in the developed world.
"Credit concerns and heightened risk aversion have led to significant turbulence in global financial markets," Bollard said.
"This development increases the likelihood of a weaker economic outlook for the United States and New Zealand's other key trading partners than in recent forecasts."
Nevertheless, inflation pressures remain and Bollard gave no indication that interest rates would fall anytime soon.