Responses to the RBNZ coming in - "hard to imagine a more dovish set of policies"
This via ANZ on the Reserve Bank of New Zealand today:
- RBNZ today increased their quantitative easing (LSAP) programme to $100bn and extended its length from 12 to 22 months.
- As regards potential alternative policy options beyond the LSAP, the RBNZ expressed a preference for a lower or negative OCR and a 'Funding for Lending Programme', while leaving all options on the table.
- The OCR will remain unchanged at 0.25% until March 2021 but the odds of lower rates beyond that have risen.
- It is hard to imagine a more dovish set of policies and commentary today - yields and the NZD both fell in response.
(bolding is mine)
- RBNZ Gov Orr says NZ dollar appreciation has moderated returns for exporters
- NZD drops on the RBNZ policy announcement
- RBNZ leaves cash rate unchanged, boosts asset purchase program