NZIER's monetary policy shadow board believes the Reserve Bank should leave the official cash rate on hold at 3.5 per cent tomorrow but that the next best option would be a cut.

The prospect of further rises in the Reserve Bank's official cash rate has disappeared over the horizon.

Inflation dropped below the Reserve Bank's annual 1 to 3 per cent target range in calendar 2014, extinguishing beyond doubt any expectations of an increase in its official cash rate this year and prompting talk that the next move could instead be a cut.

Bigger is better? Not when it comes to the price we're putting on selling smaller homes, according to new figures out from Trade Me.

The Reserve Bank of New Zealand's efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year.

The New Zealand dollar pushed on to a 21-month high against the euro yesterday as the spectre of deflation swept through Europe's financial markets.

Exceptionally low oil prices have thrown world financial markets a curve ball by driving bond yields sharply lower and undermining share prices.

New figures show Auckland property sales were the biggest in December for a decade - but it seems there's now a severe dearth of listings.

The services sector slowed in November while remaining in expansion, adding to evidence the economy is adjusting to a more moderate pace of growth.

A $6 billion drop in dairy farmers' incomes this season is a blow to the wider economy, no question, writes Brian Fallow. But it's not all bad.

The Reserve Bank still sees interest rate increases in our future, but fewer and further away than it thought three months ago.

New Zealand food prices fell in November led by cheaper spring time vegetables and cheese prices.

The Reserve Bank has left the Official Cash Rate unchanged at 3.5 per cent, saying any further rate hikes are likely to be at a later stage.

An industry has grown around the obsession on housing, writes Mike Hosking. And none of this had to be the case. The mistake was getting politicians involved.

NZIER's monetary policy shadow board believes the Reserve Bank should keep its official cash rate on hold at 3.5 per cent tomorrow, as the financial markets are confident it will.

Inflation is the right target for monetary policy, says Reserve Bank governor Graeme Wheeler, and has served the country well over the past 25 years.

The Reserve Bank's influence over long-term interest rates is limited by global investor activity, according to governor Graeme Wheeler.

New residential mortgage lending hit $4.9 billion last month, its highest level since last March and a 7.2 per cent increase on October last year, according to the Reserve Bank.

The Reserve Bank is working on new regulations for loans to big property investors which are likely to see them pay higher interest rates.

New banknotes set to be released late next year will cost around $80 million.

The Reserve Bank has unveiled more vibrant and secure banknote designs which will progressively enter circulation later next year.

NZ's version of capitalism largely involves borrowing to bid up the prices of our existing houses, particularly in Auckland, writes Peter Lyons. The rest of the country looks on bemused.

This week's Financial Stability Report made it clear that Auckland has become the centre of NZ's economic and political universe, more than ever, writes Bernard Hickey.

A leading economist has raised doubts about the practicality of a Reserve Bank landlord crackdown.

Yesterday's Reserve Bank decision to continue keeping a tight rein on residential lending has shattered the dreams of many would-be first-home buyers.

The Reserve Bank is eyeing measures to discourage speculators from buying multiple houses - acknowledging LVR restrictions have favoured investors.