The Reserve Bank has left interest rates unchanged but taken a significant step towards future rate rises.
Photo: RNZ / Alexander Robertson
It held the official cash rate at a record low 0.25 percent, and halted its bond buying programme, but will keep the cheap money bank lending programme.
It said the economy was robust on the back of a strong construction sector, investment and household spending, but still faced uncertainties.
The central bank said inflation is likely to spike over the next few months, but maintained much of it is temporary and would dissipate.
Economists increasingly think rises could come as soon as November.
