The Reserve Bank of New Zealand has signalled it may be able to delay and reduce likely interest rate hikes next year because a strong New Zealand dollar is reducing inflationary pressures.The RBNZ held the official cash rate unchanged, at 2.5 per cent, for a record 21st consecutive time yesterday, as expected, and repeated its message that interest rate hikes are likely in 2014. The bank forecast in its full September "Monetary Policy Statement" that short term interest rates would rise around two percentage points between early 2014 and early 2016. RBNZ governor Graeme Wheeler repeatedly returned to the theme earlier this month in a warning to borrowers about the risks of house price inflation.The bank is concerned that double-digit house price inflation in the supply constrained Auckland and Christchurch housing markets could spill over into wider inflationary pressures or damage bank system stability if the boom busts.Bank economists said the bank's comments about the inflation dampening effects of a high New Zealand dollar meant next year's rate increases could be lower than the bank forecast in September.The bank said in the Statement released yesterday that economic growth was running at more than three per cent and consumer price inflation was likely to rise back towards the middle of its one to three per cent target band, although the high New Zealand dollar would help reduce some of these pressures."Sustained strength in the exchange rate that leads to lower inflationary pressure would provide the bank with greater flexibility as to the timing and magnitude of future increases in the OCR," Wheeler said.The bank repeated its warnings about house price inflation and the high exchange rate being a headwind for exporters, but it also noted stronger economic growth than it foresaw previously because of high commodity prices and consumer spending.Westpac and BNZ economists changed their forecasts for the first OCR hike after the release of the Monetary Statement. Westpac shifted its forecast to an April hike, from a March hike; while BNZ shifted its forecast to June from March. ASB and ANZ's economists stuck with their forecasts for a March start, although ANZ said it might also delay the expected start. Before this, economists had mostly been forecasting the bank would start increasing the OCR from March next year and increase it by around one per cent, to 1.5 per cent, over the following year.