UPDATED 11.42AM: The strength of the dollar and house price inflation are both being identified as issues by the Reserve Bank as it leaves the Official Cash Rate unchanged.

The OCR has been left at 2.25 percent by Reserve Bank governor Graeme Wheeler today.

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He says the exchange rate remains higher than appropriate given low commodity export prices and indicates a lower dollar is desirable to boost tradeables inflation and the tradeables sector.

Wheeler also referenced house prices saying inflation in the Auckland market may be picking up.

He says prices remain at very high levels and additional supply is needed.

Wheeler also said housing pressures are also building in some other regions

In six weeks the Reserve Bank releases its Monetary Policy Statement, and ASB's chief economist Nick Tuffley believes the bank is more likely to make a change then after a full analysis of the figures.

Tuffley noted that inflation is low, and our exchange rate too high for current commodity prices , so the bank will have to lower interest rates at some point.

"The drag on the economy from weak dairy incomes is going to be lingering for quite some time and the Reserve Bank has been aware of that, and that's part of the reason it's been cutting interest rates."

However there are downsides to such low inflation, and the outlook isn't promising, Tuffley said.

"If the Reserve Bank needs to cut interest rates to boost inflation up, it should do so, and if the housing market is a concern, it should look at the financial stability that it already has and look to crank them up."