Unchanged at 2.5%

Comments from the monetary policy statement:

  • Global outlook remains mixed
  • GDp growth in Australia and China has slowed
  • Says LIKELY TO RAISE RATES IN 2014
  • SAYS NZD ‘REMAINS HIGH’
  • EXPECTS TO LEAVE KEY RATE at 2.5% in 2013

The NZD is higher as the statement comments get digested, the market seems to like the ‘LIKELY TO RAISE RATES IN 2014′ comment.

More:

  • Notes rapid house rice inflation in Auckland and Canterbury
  • Doesn’t want price stability hurt by housing inflation
  • Restriction on high LVR mortgages to help slow the housing market

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