A sharp drop in an over-valued New Zealand dollar that created inflationary pressure would need a monetary policy response, according to the Reserve Bank. The Reserve Bank has revised up its projections for the local currency on a trade-weighted basis as the kiwi remains in favour against the backdrop of increasingly upbeat global financial markets and a flood of money …

Reserve Bank governor Graeme Wheeler held the official cash rate at 2.5 percent, as expected, saying the benchmark rate is expected to move this year amid an uneven economic recovery. The kiwi dollar dropped on the news “The overvalued New Zealand dollar is undermining profitability in export and import competing industries, and worsening drought conditions are creating difficulty in much …

Arid conditions across the country that have led to a drought being declared in several North Island regions and kicked off early livestock slaughter threatens to derail agricultural production down the line, according to the Reserve Bank. The dry conditions are weighing on the primary sector, and are expected to lead to weaker milk production in the latter half of …