Preview of the RBNZ monetary policy meeting on Wednesday 22 September 2020
The Reserve Bank of New Zealand announcement will be on 23 September 2020 at 0200 GMT.
- Will provide info on any move from the Bank on its OCR, forward guidance and LSAP
- We believe the Bank will refrain from signalling any clear policy shifts at this "interim" meeting, preferring to wait until the full Monetary Policy Statement (MPS) of 11 November with respect to key forward commitments.
- we can imagine the Bank's "commitment" to keep its Official Cash Rate (OCR) at 0.25% until at least March 2021 will probably be left in for now. It could be a case of damned if you do, damned if you don't. But removing it, at this juncture, seems the bigger risk, in that it could cause a market shunt that the Bank feels a tad confronting to its optionality around OCR movements and timing thereof.