ANZ on the Reserve Bank of New Zealand elraier today:

  • The RBNZ delivered few surprises
  • but a dovish ton
  • More detail on unconventional policy options will come in August, when we continue to expect an expansion of QE


  • RBNZ ... emphasised that despite some positive near-term developments, "significant economic challenges remain" and risks remain skewed firmly to the downside.
  • The RBNZ reminded markets that they have further tricks up their sleeve if required, and said "we will outline the outlook for the LSAP programme and our readiness to deploy alternative monetary policy tools in our August Statement".
  • We continue to expect the RBNZ LSAP program to be further expanded to a cap of $90bn by August, in a pre-emptive move.