The Reserve Bank of New Zealand's monetary policy board on Thursday announced that it was holding its Official Cash Rate steady at 3.50 percent - in line with expectations.
It was the fifth straight month with no change for the RBNZ, which had hiked the OCR by 25 basis points in each of previous four meetings prior to September.
Before that, there were 23 straight meetings with no change. The OCR had been at a record low 2.50 percent since March 10, 2011 as the country dealt with the global economic slowdown.
It wasn't until last March that the central bank felt confident enough in a recovery that it lifted the OCR - although no additional action is likely in the near term.
"Global financial conditions remain very accommodative, and are reflected in high equity prices and record low interest rates. However, volatility in financial markets has increased since late-2014 following the sharp drop in oil prices, continued uncertainty about the global outlook and U.S. monetary policy, and policy easings by a number of central banks," the bank said in a statement accompanying the decision.
One of the biggest factors in the current global landscape, the bank said, was the dramatic decline in the price of oil - which has led to increased volatility.
But the cheaper oil has an added benefit for the average consumer in that it will increase buying power.
"The domestic economy remains strong. The fall in petrol prices has increased households' purchasing power and lowered the cost of doing business. Employment and construction activity are strong. Net immigration remains high, and monetary policy continues to be supportive," the bank said.
The bank noted that economic growth seems steady at around 3 percent, thanks to by rising construction activity and household incomes - while the housing market also shows signs of improvement.
The board also pointed to the easing NZ dollar, adding that further depreciation is to be expected.
"The New Zealand dollar remains unjustifiably high and unsustainable in terms of New Zealand's long-term economic fundamentals. A substantial downward correction in the real exchange rate is needed to put New Zealand's external accounts on a more sustainable footing," the bank said.
The RBNZ called it prudent to take more time and further observe the effects of its moves to date.
The bank pointed to several factors for taking its time in taking any further actions, including weak global inflation, falls in international oil prices and the high exchange rate.
"Our central projection is consistent with a period of stability in the OCR. However, future interest rate adjustments, either up or down, will depend on the emerging flow of economic data," the bank said.
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Forex News
June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.