RBNZ sees rates on hold for 39;foreseeable future39;
RBNZ says house prices now at 39;more sustainable levels39;
RBNZ sees inflation back within 13 target by H2 2024

WELLINGTON, July 12 Reuters New Zealand39;s central bank held the cash rate steady at 5.5 on Wednesday, hitting pause as expected and flagging rates would be on hold for some time, with most economists still expecting rate cuts to come in 2024.

With the country in a technical recession, the RBNZ said the official cash rate OCR had constrained spending as anticipated but would need to stay high, as inflation is expected to fall into its target range only by the second half of next year.

The Committee agreed that the OCR will need to remain at a restrictive level for the foreseeable future, the RBNZ statement said, following the decision which had been unanimously expected in a Reuters poll of 25 economists.

The New Zealand dollar is currently trading 0.6 higher following the decision, but this is largely on broader weakness in the U.S. dollar.

A frontrunner in withdrawing pandemicera stimulus among its peers, the RBNZ has battled to curb inflation, lifting rates by 525 basis points over 20 months in the most aggressive tightening since the official cash rate was introduced in 1999.

ASB Bank chief economist Nick Tuffley said ASB remains of the view that the RBNZ has done enough to get inflation under control but will remain wary for the time being.

We don39;t expect OCR cuts until May next year,…