The persistent strength of the New Zealand dollar has been a “significant headwind” to the economy as it erodes export earnings and encourages local consumers to buy foreign-made goods, according to Reserve Bank governor Graeme Wheeler. The Reserve Bank has raised its forecasts for the currency over the coming two years, as international money markets chase yields in a low …

The Reserve Bank is keeping a watchful eye on the country’s property market, which has started heating up as low mortgage rates and easier lending criteria encourage first-home buyers. RBNZ governor Graeme Wheeler, who held the official cash rate at 2.5 percent today, said the housing market, particularly Auckland, is starting to strengthen with cheaper bank funding costs leading to …

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.5 percent, as expected, saying monetary policy is still focused on future inflation and that he’s looking for any sign of more softening in prices. “The bank is closely monitoring indicators for any sign of further moderation and is mindful of recent downside surprises to employment and inflation outturns,” …