The Reserve Bank of New Zealand has decided to keep the official cash rate on hold at 2.5 per cent for the seventh consecutive month.
Reserve Bank Governor Alan Bollard said while the economy continued to show shoots of recovery, uncertainty about the durability of expansion remained.
“Global activity has continued to rebound. Most obviously, activity in Australia, China and emerging Asia continues to increase and solid growth is expected over the next few years,” Mr Bollard said.
“The picture is more mixed in the major developed economies. While activity is expanding, sustained growth is not assured. Financial sectors are still impaired in a number of economies and economic activity is still heavily dependent on policy support.”