New Zealand central bank holds rates at 0 25%, maintains QE msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.
Analysis - The central bank will likely hold its official cash rate steady, and leave other key policies unchanged, Business Editor Gyles Beckford writes.
Unlike a fixed interest rate, the new build floating rate (currently 1.79 percent) changes according to market conditions. ASB said the rate is linked to the Reserve Bank Funding for Lending Programme, a pool of funds available at the Official Cash Rate for banks to lend.
The bank said there s confidence these funds will stay low for the foreseeable future. If the Reserve Bank did change the discounted FLP rate then that would trigger us to look at the ASB Back My Build variable rate, but our intention is for our customers to enjoy the benefit of the FLP discounted rate, Sims added.