RBNZ unexpectedly left its key interest rate unchanged, citing global
uncertainty weighing on domestic demand; the New Zealand dollar fell.
committee said members differed on the scale of risks and timing of policy
action but unanimously agreed further tightening may still be required,
contingent on the economic outlook. The decision was a 4-3 vote to hold; Paul
Conway, Hailey Gurley and Karen Silk voted for a 25bp hike, while Governor Anna
Breman and member Prasanna Gai were among the four who voted to maintain rates,
citing the risk that "the global environment could change suddenly." The
decision comes 10 days before New Zealand's election; the centre-right coalition
faces a tight race and the Labour-led centre-left opposition proposes restoring
the RBNZ's dual mandate of price stability and full employment.
