The Reserve Bank is "carefully monitoring" an already highly indebted agriculture sector as the recent drought is likely to put more strain on stretched balance sheets.

The critically dry summer will knock 0.7% off annual economic growth, more than twice the 0.2% to 0.3% Reserve Bank forecast.

The list of regions officially experiencing drought grows.

The the most arid conditions in the North Island for almost seven decades keeps investors nervous.

Bruce Wills: the region is in the grips of a 70-year serious drought event.