Reserve Bank of New Zealand monetary policy statement
- Cash rate unchanged
- Funding for Lending program unchanged
- Large scale asset purchase program unchanged
RBNZ projections indicate the cash rate may rise in the second half of 2022
- says to maintain stimulatory monetary settings until it confident that inflation and employment targets achieved
- says near-term economic data will continue to be highly variable
- aggregate level of employment has also proved resilient, while fiscal spending continues to support domestic economic activity.
- tourism-related business activity continues to be affected by the absence of international visitors
- medium term inflation employment to remain below remit targets in the absence of stimulus
- effect of the government's new housing policies on house price growth and hence economic activity will also take time to be observed
- our medium-term outlook for growth remains similar to the scenario presented in the February
- we remain cautious however, given ongoing virus-related restrictions in activity,
- price pressures on businesses are likely to be temporary and are expected to abate over the course of the year.
Governor Orr speaks at 0300 GMT at his post-statement press conference.
Background to this meeting:
- RBNZ monetary policy statement preview - all 3 main policy levers expected to be left unchanged
- RBNZ monetary policy meeting announcement due today, 26 May 2021 - preview
- RBNZ monetary policy meeting 26 May - preview
- RBNZ monetary policy meeting 26 May 2021 - here is sort of a preview
- RBNZ monetary policy meeting 26 May 2021 - Goldman Sachs preview
- RBNZ monetary policy meeting preview - quick snippet