I had this out on twitter immediately, make sure you are following @ForexLive

Official cash rate left at 3.5%, as expected

  • RBNZ says New Zealand dollar level is unjustified, unsustainable
  • Says prudent to pause before considering more rate
  • Expects significant further drop in New Zealand dollar
  • Expects some rate tightening will be necessary
  • Expects economy to grow 3.7% over 2014
  • Sees inflation reaching 2% in Q3 2016
  • Raises Q1 2015 GDP forecast to 2.6% (vs. 2.4%)
  • Expect house price inflation continue to ease
  • Reserve Bank of New Zealand raises 1Q 2015 GDP forecast from 2.7% to 3.2%. 1Q 2016 forecast from 2.4% to 2.6%.

The full Monetary Policy Statement can be found here

Statement issued by Reserve Bank Governor Graeme Wheeler