RBNZ Leaves Cash Rate Unchanged At 2.5%

As expected , NZD/USD trading at 0.8195.05.

RBNZ says :

• Appropriate for policy to be held steady
• High NZ dollar undermines export earnings .
• Sees 90 day bank bill average 2.7% Dec.2012: 2.7 % June 2013 and 2.8% Dec. 2013.
• Says NZ outlook consistent with June MPS.
• Domestic economic activity to grow modesty over next few years .
• Fiscal consolidation, exchange rate constrain demand .
• Inflation rate near mid target range .
• Trading partner outlook weak , Chinese growth has slowed .
• Says housing market improving as forecast .

NZD/USD now at 0.8195/00.