WELLINGTON, Feb. 8 (Xinhua) -- The New Zealand Reserve Bank on Thursday left the Official Cash Rate unchanged at 1.75 percent.
Global economic growth continues to improve, Reserve Bank Governor Grant Spencer said in a statement, adding that while global inflation remains subdued, there are some signs of emerging pressures.
Commodity prices have increased, although agricultural prices are relatively soft, and international bond yields have increased since November last year but remain relatively low, Spencer said.
Equity markets have been strong, although volatility has increased recently, he said, adding that monetary policy remains easy in the advanced economies but is gradually becoming less stimulatory.
"The exchange rate has firmed since the November Statement, due in large part to a weak U.S. dollar. We assume the trade weighted exchange rate will ease over the projection period," Spencer said.
The GDP growth eased over the second half of 2017 but is expected to strengthen, driven by accommodative monetary policy, a high terms of trade, government spending and population growth, he said, adding that labor market conditions continue to tighten.
Compared to the November Statement, the growth profile is weaker in the near term but stronger in the medium term, the governor said, adding that monetary policy will remain accommodative for a considerable period.