The official cash rate is set in stone for now.
Banks and analysts will now begin the task of poring over its latest commentary for a sense of where it may go next - and when.
LONDON, June 22 (Reuters) - The New Zealand dollar was the main mover in an otherwise dormant market in major global currencies on Thursday, up half a percent after the country's central bank made no clear effort to talk the currency down at a regular policy meeting.
"GDP growth in the March quarter was lower than expected, with weaker export volumes and residential construction partially offset by stronger consumption", it said.
Reserve Bank governor Graeme Wheeler said "numerous uncertainties" remained in the economy.
"A lower New Zealand dollar would help rebalance the growth outlook towards the tradables sector", Wheeler said. "Recent changes announced in Budget 2017 should support the outlook for growth", the RBNZ said.
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He says he expects this moderation to continue, although there is a risk of a resurgence given the on-going imbalance between supply and demand. "This will bring future headline inflation to the midpoint of the target band over the medium term". "But as long as the pickup in underlying inflation remains gradual, and inflation expectations remain well anchored, the RBNZ is unlikely find itself under pressure to raise rates by this time next year", the report commented.
All 15 economists surveyed by Bloomberg expected today's decision, and they all forecast the benchmark rate will remain at 1.75 percent throughout this year.
Financial markets pushed the kiwi slightly higher in the wake of the OCR statement.
Forex traders pushed the kiwi slightly higher in the wake of the interest rate decision as the Kiwi rose from USA 72.31 cents to United States 72.51 cents and also gained about 0.20 cents against the Euro within minutes of the statement. The language could have been stronger around the currency, for example stating that "a decline in the exchange rate is needed " as they have in previous statements, but it appears that the Bank isn't too perturbed by the rally in the currency given that export prices have also risen.
The National Association of Realtors said strong demand and cheap mortgages were driving up prices at an unsustainable rate, as sales of existing homes rose 1.1% in May to an annual rate of 5.62 million.
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