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RBNZ holds interest rate at 2.5 per cent
The Reserve Bank is leaving the official interest rate steady at 2.5 per cent and expects to keep it "unchanged through the end of the year". In its Monetary Policy Statement issued this morning, the central bank said there were "both upside and downside risks to the [economic] outlook". But the bank's projections pointed to the first interest rate rise not coming till well into next year. The bank warned again about rising house prices, but noted the impact of the growing drought. The Reserve Bank also pointed to the "overvalued" New Zealand dollar, which was undermining profits in export and import-competing ... (full story)