WELLINGTON, June 28 (Reuters) - The Reserve Bank of New Zealand (RBNZ) on Thursday kept interest rates on hold and said the central bank will keep monetary conditions expansionary for a considerable period of time.
"The recent weaker gross domestic product (GDP) outturn implies marginally more spare capacity in the economy than we anticipated," the RBNZ said in a statement on the rate decision.
The bank held the official cash rate at a record low of 1.75 percent for the 11th time in a row as it works to boost tepid inflation to 2 percent, the centre of its target band.
The New Zealand dollar NZD=D4 initially moved lower to $0.6783 before moving back to around $0.68.
