The Reserve Bank of New Zealand has left its benchmark interest rate unchanged at 5.00 per cent, although it warned of a rate hike in the medium term.
Sunday, October 26th 2003, 4:44AM
by The Landlord
The central bank said in a statement today that the official cash rate at 5 per cent was still able to hold inflation within its target range of between 1 per cent and 3 per cent.
Inflation remains steady at 1.5 per cent, although Reserve Bank Governor Alan Bollard has warned it is likely to rise to just below the ceiling within two years.
A booming house market, fuelled by continued net migration and low mortgage rates, is currently being balanced by a weaker export sector.
