New Zealand - RBNZ remains one of the most dovish central banks

There remains plenty of uncertainty around the formation of the next government and who will be the next permanent Governor of the Reserve Bank of New Zealand, but the one consistency is the dovish message that the RBNZ sent today after leaving interest rates on hold at 1.75%. It doesn’t think it will raise interest rates until the end of 2019, which makes it more dovish than central banks in most other advanced economies. At some point, this will surely weaken the New Zealand below US$0.70.