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Radaus
Fri, 12 Mar 2010
AUCKLAND, NZ ---- The Reserve Bank in New Zealand has left interest rates on hold but has indicated that rates will start rising around the middle of the year.
In a move that was widely anticipated by economists the interest rate was left on hold at 2.5 per cent.
The Reserve Bank Governor Alan Bollard said that while the New Zealand economy is recovering, households remain cautious.
In a statement he says that despite higher business and consumer confidence, house sales and credit growth remain subdued in New Zealand and business spending is weak.
Dr Bollard repeated his call for the New Zealand Government to restrain its spending plans to try and keep future increases in the cost of borrowing in check.
Last week, Australia's central bank raised interest rates by 25 basis points to 4 per cent, for the first time this year.
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