2017.03.2217:00:00UTC+00RBNZ Holds Official Cash Rate Steady At 1.75%

The Reserve Bank of New Zealand on Thursday maintained its Official Cash Rate at the record low of 1.75 percent.

The decision was in line with expectations following a rate cut in November. Following no move in September, the central bank trimmed its benchmark by 25 basis points in August after holding fire for three straight months.

The central bank has pared a collective 1.50 percent from its benchmark in the last 12 months, lowering the rate in six of the last 11 meetings after six straight sessions with no change.

Macroeconomic indicators in advanced economies have been positive over the past two months, RBNZ Governor Graeme Wheeler noted.

"Major challenges remain with on-going surplus capacity in the global economy and extensive geo-political uncertainty," Wheeler said in a statement accompanying the decision.

He also pointed to an increase in global headline inflation, noting that monetary policy is expected to remain stimulatory.

"Global headline inflation has increased, partly due to a rise in commodity prices, although oil prices have fallen more recently. Core inflation has been low and stable. Monetary policy is expected to remain stimulatory, but less so going forward, particularly in the U.S.," Wheeler said.

Inflation is seen holding steady within the bank's target range midpoint, right near 2 percent.

The bank added that domestic growth was slightly weaker than expected, although that situation is viewed as temporary - adding that the growth outlook continued to be favorable.

"Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust accordingly," Wheeler said.