Westpac on the new instructions to the RBNZ from the New Zealand government
Its been an eventful week so far in NZ with the government there asking the Reserve Bank of New Zealand to consider policies to contain house prices rises.
ICYMI from Tuesday:
On Wednesday RBNZ Governor Orr duly outlined his policies, FT had a nice summary:
- while the Bank wanted to be 'operationally' prepared for negative rates the Bank has not yet said it'll be going negative
- did not mention comments he has made previously that he wants to work to get bond yields lower
Westpac comments (bolding mine):
- "That might make the RBNZ less gung-ho about lowering interest rates in the near term,"
- "We were forecasting OCR cuts in April, May and August, but that timing now looks less likely. We are reviewing our OCR forecasts and will update them in due course."