The International Monetary Fund counsels against "messing with" the NZ monetary policy framework.

The kiwi dollar dropped by 1 US cent after the Reserve Bank warned that a strong currency could always prompt an OCR cut.

The Reserve Bank says the Official Cash Rate will stay at its record low of 2.5pc. The kiwi dollar dropped on the news.

The financial markets see no chance the Reserve Bank will raise the official cash rate on Thursday, so their focus will be on how the accompanying monetary policy statement describes the balance of risks going forward.

The Reserve Bank has released a consultation paper on the macro-prudential instruments it wants to add to its toolbox.

Bill English says the greatest influence on the housing market will continue to be interest rates and supply constraints created by the planning system, writes Brian Fallow.

The higher the exchange rate is, the lower interest rates can be, writes Brian Fallow. Asset price inflation, in the Auckland housing market at any rate, is alive and well.