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12.05.201122:14:00UTC+00New Zealand Gov Repeats Stance to Keep Rates on Hold for Sometime

News:

  • NZ C.bank gov repeated comments that New Zealand's interest rates will be kept low and policy shall be focused on medium-term impact of inflationary pressures
  • Financial markets pricing of rate hikes remained benign, implying 58 basis points of rate rises over the next 12 months from 60 bps earlier this week
Quotes:
  • "It is appropriate for monetary policy to remain supportive, given the continued downside risks to economic activity stemming from the Canterbury earthquakes and more broad fragility in the New Zealand economy," Alan Bollard
  • "We remain comfortable with our expectations of hikes beginning in March 2012," he said

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