RBNZ: no hurry to raise interest rates - UOB

Analysts at UOB Group noted that the Reserve Bank of New Zealand (RBNZ) Assistant Governor and Head of Economics John McDermott indicated that the RBNZ would be in no hurry to raise interest rates. 

Key Quotes:

"The RBNZ lightly poured cold water over expectations that interest rates may be hiked as soon as next year by saying that its own ‘core’ measure sees inflation running at around just 1.4%, while it now views current interest rate levels as less ‘stimulatory’ than it previously believed."

"The RBNZ now estimates the ‘neutral interest rate’, at 3.5%, from above 4% previously. As recently as two years ago, the RBNZ estimated the ‘neutral’ rate at 4.5%. McDermott also made reference to the high level of the New Zealand dollar (currently above US74c) and indicated that the central bank wanted to see it lower."