New Zealand Finance Minister Grant Robertson said there was no plan to include the New Zealand dollar, the world's 11-most traded currency, in the review - remarks that pushed the currency up around a quarter of a U.S. cent.
Earlier, the central bank left interest rates on hold and said the drop in the dollar, if sustained, would help lift inflation. "The impact of these policies remains very uncertain", he said in the statement.
While holding rates steady at 1.75 percent as expected, the Reserve Bank of New Zealand (RBNZ) said policies proposed by the new Labour government could boost economic growth by around half a percentage point in each of the next three years.
The cash rate has stayed at 1.75 per cent since this time a year ago. Previously, the RBNZ warned that "a lower New Zealand dollar is needed to increase tradables inflation and help deliver more balanced growth".
Combined, it said "inflation is projected to remain near the midpoint of the target range and longer-term inflation expectations are well anchored at 2%", maintaining a similar view to that offered previously. The bank already uses "flexible inflation targeting" where inflation is the primary objective, but not the sole objective.
Following the release of New Zealand's September quarter CPI report last month, it noted that "non-tradable inflation is moderate but expected to increase gradually as capacity pressures increase", repeating the same line used in September.
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Second, the RBNZ brought forward the timing of when they expect inflation to reach 2% by nine months largely because of a lower trade-weighted index. A full rate increase, however, is still signalled in March 2020 when the benchmark rate is forecast to be 2 per cent. Interest rates are also slightly higher at the end of the forecast period, rising to 2.1 per cent in June 2020 versus a prior forecast of 2 per cent.
However, business confidence fell to its lowest level in two years after New Zealand's recent general election, which saw the Labour-led coalition headed by Prime Minister Jacinda Ardern replace the center-right government, which had been in power for almost a decade.
On economic growth, Spencer was more upbeat than in the previous statement.
Gross domestic product will rise 3.8 per cent in the first quarter of 2018 from a year earlier, unchanged from the August projection, before slowing to 3.1 per cent by the first quarter of 2019.
However, the outlook for housing and construction was weaker.