Investing.com - The Reserve Bank of New Zealand Thursday held the official cash rate unchanged at 2.25%, while noting that further policy easing may be required to ensure future average inflation settles near the middle of the target range.
The RBNZ maintained its 90-day bill forecast path by slightly raising the growth forecast for the near term and strengthening its forecast for the trade-weighted exchange rate.
On the exchange rate, the RBNZ said it is higher than appropriate given low export commodity prices and, together with weak overseas inflation, is holding
down tradables inflation. "A lower New Zealand dollar would raise tradables inflation and assist the tradables sector," the RBNZ said.