The Reserve Bank has held the official cash rate at a record low 0.25 percent.
Economists had thought the reimposition of the Covid lockdown would cause the central bank to delay what was regarded as a near certainty rise.
The RBNZ says given the uncertainty caused by the new outbreak justifies leaving policy unchanged despite growing inflation pressures and the strong labour market.
“Persistent and elevated health risks are promoting ongoing global supply chain disruptions, and are acting to constrain productive capacity and prolong inflationary pressures. Today’s re-introduction of Level 4 restrictions to activity across New Zealand is a stark example of how unpredictable and disruptive the virus is proving to be.”
It also noted that house prices were also above their sustainable level, “heightening the risk of a price correction as supply increases”.
It has signalled that it expects to raise rates in the future as conditions change.
