New Zealand central bank leaves interest rates steady |
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Published
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Thu, 13 Sep 2007 00:26
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SYDNEY (Thomson Financial) - The Reserve Bank of New Zealand on Thursday left its official interest rate unchanged at 8.25percent after raising it four times so far this year, ending a tightening cycle that has lasted more than three years.Since January 2004, there had been 13 rate hikes of 25 basis points each as the central bank attempted to rein in strong domestic demand which had fanned inflation.RBNZ governor Alan Bollard said the bank expects the current interest rate level to be sufficient to contain inflation in the medium term.Bollard said the balance of risks in the economy means the central bank doesn't anticipate hiking interest rates again in the current economic cycle.TD Securities senior strategist Joshua Williamson said the RBNZ rhetoric can be judged to be balanced.He said the central bank signalled there was evidence of a turning point in the housing market with growth in household borrowing beginning to slow.Williamson said Bollard also signalled that the recent market ructions 'could further act to dampen activity.'bruce.hextall@thomson.combhx/msCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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NASDAQ
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2354.06 |
-13.60 (
-0.58 %)
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2010-03-15 ) |
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SABMILLER
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12:35pm )
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1893.00 |
+19.00 (
1.01 %)
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SHIRE
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12:35pm )
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1466.00 |
+17.00 (
1.16 %)
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| SYMBOL (
2010-03-15 )
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CHANGE
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| SYMBOL (
2010-03-15 )
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New Zealand shares close lower as kiwi strengthens 