The Reserve Bank of New Zealand on Thursday kept its Official Cash Rate unchanged at the record low of 1.75 percent for the 10th straight meeting.
The decision was in line with expectations following a 0.25 percent rate cut in November 2016.
The central bank has pared a collective 0.50 percent from its benchmark in the last 18 months, lowering the rate in six of the last 18 meetings after six straight sessions with no change.
The domestic economy has continued to improve in recent months, RBNZ Governor Adrian Orr noted.
“The recent growth in demand has been delivered by an unprecedented increase in employment. The number of willing workers continues to rise, especially with more female and older workers choosing to participate. Likewise net immigration has added to the supply of labor, and the demand for goods, services, and accommodation,” Orr said in a statement accompanying the decision.
Orr added that New Zealand’s products and services should continue to be in demand thanks to continuing global growth.
He also noted that consumer prices are expected to gradually rise to the 2 percent annual target.
“To best ensure this outcome, we expect to keep the OCR at this expansionary level for a considerable period of time. This is the best contribution we can make, at this moment, to maximizing sustainable employment and maintaining low and stable inflation,” he said.