2017.06.2118:57:00UTC+00New Zealand Central Bank Stands Pat on Historically Low Rates

The Reserve Bank of New Zealand kept their benchmark interest rates at a record low and signaled that they have no plans to tighten monetary policy any time in the near future.

RBNZ Governor Graeme Wheeler, who delivered a statement after policymakers ruled to hold the official cash rate unchanged at 1.75 percent, said that the central bank's monetary policy will continue to be accommodative for a substantial period. He added that several uncertainties still linger and that policy may need to be revised accordingly.

In May, Wheeler reiterated that the central bank is not expecting to hike rates until late 2019, taking economists by surprise. The extended period of rate hike pause comes despite inflation returning to the midrange of the 1-3 percent target. The most recent inflation data did not nudge Wheeler's view that inflation will slump once more, as economic growth failed to hit estimates for two consecutive quarters.

The New Zealand dollar climbed by as much as half a U.S. cent after Wheeler's statement at 72.54 cents.