Reserve Bank Governor Alan Bollard has held the official cash rate at 2.5 per cent citing the "restrained" outlook for inflation, while warning that the kiwi dollar's strength may prompt a review of monetary policy if it persists without cause. "The New Zealand dollar has stayed elevated despite recent falls in commodity prices," Bollard said in a statement. "Should the exchange rate remain strong without anything else changing, the bank would need to reassess the outlook for monetary policy settings." The currency's strength has kept a lid on tradable inflation, giving Bollard room to keep rates low. Last month he ... (full story)