Last week the Reserve Bank of New Zealand announced a (near) doubling of their quantitative easing program

  • From 33bn to 60bn NZ dollars

ANZ expect even more to come, placing the expansion in the contest of the Government delivered a truly massive Budget … a lot of funding as yet unallocated:

  • We are now forecasting a further scaling-up of QE at the August MPS to a $90bn limit. This will help to absorb the bigger-than-expected program of Government bond issuance to fund all that spending. The RBNZ has received an indemnity from the Government to increase QE as outstanding bonds grow, so the hurdle has been lowered, but an expansion will still need sign-off from the Monetary Policy Committee. We expect this will happen at the August MPS, if not earlier.
Last week the Reserve Bank of New Zealand announced a (near) doubling of their quantitative easing program

Easier policy should equate to a lower currency, all else being equal (which it never is if course).