Reserve Bank Governor, Wheeler.
I don’t see interest rising for years. Typical Reserve Bank “jaw boning”
Interest-rate rises are looming even though official rates were kept at 3.5 per cent today, the Reserve Bank says.
And the central bank is expecting the housing market to keep cooling down, despite strong net migration.
The dollar remained too high and was expected to come down significantly, the bank said.
In its latest Monetary Policy Statement this morning <http://www.rbnz.govt.nz/monetary_policy/monetary_policy_statement/2014/mpssep14.pdf> , the central bank said: “We expect some further policy tightening will be necessary to keep future average inflation near the target 2 per cent midpoint.”
The bank gave no specific timing for the next rate rise, but said the present pause would be for “some time” to see how the economy went.
Economists expect the next rate move about April next year.