The lower New Zealand dollar is good for exporters and a sign the economy is heading in a more productive direction, says Prime Minister Jacinda Ardern.
Her comments came after the Kiwi dollar dropped to a two-year low of 66.7 US cents, in the wake of the Reserve Bank's decision to push out its projection for a rate-rise to September 2019.
“The Governor of the Reserve Bank pointed out yesterday his expectation that we would see export-led growth,” Ardern said.
“Certainly we want to make sure that rather than have an economy that grows off the back of housing speculation and migration we look instead to the productive economy like our exporters,” she said.
Ardern acknowledged that the lower dollar was not wholly good news.
“It’s always mixed depending on what perspective you’re looking at it from.”
But the correlation between a low dollar and higher oil prices was less direct and New Zealand had been used to higher oil prices for some time, she said.