September 13, 2012 / 1:36 AM / 5 years ago

RBNZ's legislative rules still work - Gov Bollard

WELLINGTON, Sept 13 (Reuters) - The legislation governing the Reserve Bank of New Zealand and its approach to monetary policy still works, the outgoing Governor Allan Bollard said on Thursday.

He told a parliamentary committee that the RBNZ was a "flexible inflation targeter" and that its legislative framework and policy targets agreement allowed it to consider various factors when setting interest rates.

"It still works," Bollard told a lawmaker.

Earlier, Bollard had held the benchmark cash rate steady at 2.5 percent, as expected, because of an uncertain global outlook, a modest domestic economy, and benign inflation.

For the text of the Reserve Bank of New Zealand's (RBNZ) latest statement click on. (Gyles Beckford)

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