RBNZ Signals Longer Rate Pause Sending Kiwi to Seven-Month Low
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New Zealand’s central bank signaled it will keep interest rates on hold for longer as it lowered inflation forecasts and repeated calls for a weaker currency, sending the kiwi dollar to a seven-month low.
“It is prudent to undertake a period of monitoring and assessment before considering further policy adjustment,” Governor Graeme Wheeler said in Wellington after keeping the official cash rate at 3.5 percent, which is among the highest in the developed world. The Reserve Bank of New Zealand lowered its 90-day bank bill rate forecast, suggesting borrowing costs won’t rise again until the first half of 2015.