New Zealand - RBNZ says rate hikes are a more distant prospect

While leaving interest rates at the record low of 1.75% at today’s policy meeting, the Reserve Bank of New Zealand strongly suggested that the first interest rate hike is further away than it previously thought. That supports the more dovish rate forecast that we have held for a while and it may contribute to the New Zealand dollar weakening from US$0.67 now to closer to our end-year forecast of US$0.65.