The Reserve Bank of New Zealand raised its official cash rate 0.25 percent as expected to 3.5 percent and included this in its short statement.
"Over recent months, export prices for dairy and timber have fallen, and these will reduce primary sector incomes over the coming year. With the exchange rate yet to adjust to weakening commodity prices, the level of the New Zealand dollar is unjustified and unsustainable and there is potential for a significant fall" (italics mine).
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