New Zealand holds rates at 8.25%

The Reserve Bank of New Zealand kept rates unchanged for the seventh straight month.

Alan Bollard, the governor of the Reserve Bank, said that it was likely that rates would remain on hold "for a significant time yet".

At 8.25%, the benchmark official cash rate is at an all-time high since its introduction in March 1999. However, at 3.2% for the year to December, inflation is above the central bank's target band and rates must remain at current levels if inflation is to move within range over