I posted on Reserve Bank of New Zealand Governor Orr yesterday letting the cat out of the bag:

And more later:

I thought it might have weighed on the NZD more than it has, but it seems to have been greeted with yawns.

BNZ, for example, not really fussed, noting as I did yesterday that the normal procedure is for the govmt to issue debt to the market and then the central bank to buy it from the market as part of QE:

  • Governor Orr also said that he was open-minded on direct monetisation of debt. While this is seen as "taboo" by some purists ... it is effectively equivalent to what is going on now, with the government issuing debt to the market and the RBNZ hoovering it up as part of its QE programme.

BNZ shrugging it off … as has the NZD market. At least for now.