- Expects to keep overnight cash rate unchanged through the rest of the year
- Sees signs of stronger growth since Dec
- Does not want to see financial stability or inflation risks accentuated by housing demand
- Overvalued dollar undemines export profits
- Economy to grow 2-3% over forecast period
- Fiscal consolidation slows demand, helps reduce upward pressure on NZD
- Drought conditions worsening, may hit output. Sees impact of 0.2-0.3% to H1 GDP
- Inflation to head back to mid target range
NZD getting sold across the board
NZD/USD falls from 0.8270 to 0.8200
NZD/JPY to 78.78 from 79.40
AUD/NZD at 1.2560 from 1.2460
The main emphasis on the statement is towards the currency and stemming it’s appreciation.
