The Reserve Bank of New Zealand (RBNZ) released its interest rate decision on Wednesday. The RBNZ kept its interest rate unchanged at 3.50%. This decision was expected by analysts.

The RBNZ Governor Graeme Wheeler said that interest rate hike "is expected to be required at a later stage" because of the economic growth of around 3% and as New Zealand's jobless rate declines. Monetary policy adjustments "will depend on data", he added.

Wheeler noted that the exchange rate of the kiwi "does not reflect the decline in export prices this year and remains unjustifiably and unsustainably high". "A further significant depreciation" is expected by New Zealand's, he said.

The RBNZ governor pointed out that low interest rates "continue to support domestic demand".

Wheeler expect that dairy prices will recover in 2015.

The central bank revised its inflation and growth forecasts. Inflation is expected to be 1.1% in the 12 months ending March 31, 2015. The RBNZ said that inflation in New Zealand won't reach 2% until the fourth quarter of 2016.

The economic growth in the year ending March 2016 was revised to 3.1% from 2.6%, while the economic growth in the year ending March 2017 was revised to 3.0% from 2.2%.