News: UPDATE 1-RBNZ says may ease policy if inflation does not pick up from late 2018

(Updates throughout)

WELLINGTON, Dec 5 (Reuters) - Reserve Bank of New Zealand Governor Grant Spencer said on Tuesday that the central bank would have to consider further easing monetary policy if non-traded inflation does not pick up from late 2018 as expected, driving the local currency higher.

New Zealand's central bank has kept interest rates at a record low of 1.75 percent for seven consecutive meetings.

It has consistently maintained its position that monetary policy will remain accommodative for a considerable period as the economy slows and inflation remains well within the 1-3 percent target band.

"In the context of the November Monetary Policy Statement, non-traded inflation is forecast to pick up from late 2018 in response to increasing capacity pressures," Spencer said in a speech delivered to the Institute of Directors in Auckland.

"If this response does not eventuate then we would have to consider a further easing of policy to generate additional domestic demand pressure, particularly if global inflation remains low in line with our forecasts."

The New Zealand dollar jumped to $0.6891 from around $0.6866 before Specer's speech.

The central bank has launched a review of the Reserve Bank Act with the aim of adding maximising employment as a monetary policy goal alongside inflation.