The Reserve Bank New Zealand (RBNZ) is holding the official cash rate (OCR) at 1.75% as it believes no change is needed to interest rates yet.
RBNZ Governor Graeme Wheeler says the economy was expected to keep growing strongly, while the housing market was showing signs of levelling out.
According to Wheeler, inflation was picking up but was expected to remain subdued for some time, so no change was needed to interest rates in the near term.
However, Wheeler reckons the New Zealand dollar had to fall, and there was plenty of uncertainty, which meant interest rates would stay low for some time.
But he says the New Zealand economic outlook was positive with strong immigration gains, household spending and construction, and would benefit from a further fall in the currency.
