The Reserve Bank of New Zealand kept the interest rates unchanged at its record low of 2.5 percent, as a result for weak economic growth that eased the inflation pressure, yet the New Zealand dollar fell.

Governor Alan Bollard said that the sustained strength in the New Zealand dollar would reduce the need for further increases in the cash rate.

Also, he added that the Inflation is near the middle of the RBNZ's targeted levels of 1% to 3% target range and the price expectations have fallen.