Some of the highlights from the RBNZ statement.

  • Further rate cuts remain possible though cash rate is likely to stay steady until late next year
  • Rates will eventually rise when economic recovery is entrenched
  • High NZD threatens economic recovery
  • Q3 GDP should improve slightly to +0.1% from -0.1% in Q2
  • NZD rise against the AUD is at odds with fundamentals

The NZD dipped a little at first but has now popped back up.