FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, notes that the New Zealand dollar has been undermined overnight following the RBNZ’s policy meeting. Key Quotes “The accompanying policy statement displayed a more dovish tone stating that “some further policy easing may be required over the coming year to ensure that future average inflation settles near the middle of their target range. The annual rate of headline inflation is now expected to take longer to reach their target ranger than previously expected. It was a more dovish assessment than at their last meeting when the RBNZ stated that they expected current interest rate settings to help ensure future average inflation settles near the middle of the target range, although they stated they will reduce rates if circumstances warrant. However, the RBNZ still appears somewhat reluctant to ease policy further in the near-term emphasizing for the first time in the statement that the annual core rate is consistent with the target range and that inflation expectations remain stable. The RBNZ reiterated that a further depreciation of the kiwi is appropriate which would help support core inflation and dampen the need for further rate cuts.” For more information, read our latest forex news.