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New Zealand Signals Rates May Stay at Record Low

New Zealand’s central bank signaled it may keep interest rates at a record low for another year, extending a 15-month pause as weaker domestic growth eases inflation and Europe’s fiscal crisis clouds the outlook.

“Our forecast for 90-day interest rates is consistent with not having to push the OCR up for some time,” Reserve Bank of New Zealand Governor Alan Bollard said at a news conference in Wellington today after earlier keeping the official cash rate at 2.5 percent. The central bank cut its forecasts for economic growth in the next three years, citing falling commodity prices and spending restraint.