New Zealand has kept its policy rate unchanged at 1.75% after its monetary policy meeting today (November 2009).
Despite low unemployment, low inflation prevents the implementation of a tighter monetary policy, the central bank said in an official statement. In the policy assessment, governor Adrian Orr says the RBNZ expects to keep the key policy rate in 2019 and 2020.
“Employment is around its maximum sustainable level,” the RBNZ statement said. “However, core consumer price inflation