RBNZ Governor Graeme Wheeler’s first OCR statement.

  • Says global economy remains fragile.
  • Says appropriate to hold rates for now.
  • Global economy recovery dependent on policy implementation.
  • Says high currency undermines export earnings.
  • Says market sentiment has improved from earlier in the year.
  • Says domestic GDP continues to expand at modest pace.
  • Says high NZ$ encouraging import situation.
  • Says fiscal consolidation restraining demand growth.
  • Sees inflation heading back towards middle of target range.
  • Says Canterbury quake reconstruction boosting construction.
  • Says domestic housing market activity increasing as expected.

NZD/USD trading much higher at 0.8180/85 from 0.8150 prior to the release.

BBG headlines.