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RBNZ Holds Cash Rate at Record Low on Weak Inflation Outlook
New Zealand’s central bank held interest rates at a record low and indicated it doesn’t expect to raise them anytime soon as economic growth loses momentum and inflation remains subdued. “Monetary policy will remain accommodative for a considerable period,” Reserve Bank Acting Governor Grant Spencer said in a statement Thursday in Wellington after keeping the official cash rate at 1.75 percent. “Inflation is expected to weaken further in the near term” before trending up toward the bank’s 2 percent target “over the medium term,” he said. New Zealand’s benchmark rate has been at an historic low ... (full story)