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 …

The New Zealand dollar was little changed ahead of the Reserve Bank’s statement as traders ponder its assessment of the impact of drought, a high kiwi dollar and a hot Auckland property market on the outlook for the economy. The local currency traded at 82.53 US cents from 82.50 cents at 5pm in Wellington yesterday. The trade-weighted index rose to …