RBNZ monetary policy decision and statement
Monetary Policy Committee has agreed to significantly expand the Large Scale Asset Purchase (LSAP) programme potential to $60 billion
- up from the previous $33 billion limit
- LSAP programme includes NZ Government Bonds, Local Government Funding Agency Bonds and, now, NZ Government Inflation-Indexed Bonds.
More:
- members agreed that LSAP program can be scaled as needed
- RBNZ expects to see retail interest rates decline further
- prepared to provide fixed term loans to banks if needed
- QE expansion aims to cut borrowing costs quickly, sharply
- prepared to add other assets to LSAP program
- committee reached a consensus on policy decision
- forecasts show annual inflation of -0.4% in Q1 2021
- prepared to cut cash rate further if needed
- balance of economic risk remains to downside
- keeping interest rates low for foreseeable future
- committed to achieving employment, inflation objectives
- forecasts show no chance of rate cut through Q1 2021
- sees average ocr in 1q 2021 at 0.25%
- sees average ocr in 4q 2020 at 0.25%
- sees average ocr in 3q 2020 at 0.25%
- sees GDP contracting 21.8% in 2q 2020
Text:
Still to come:
- Governor Orr's press conference at 0300GMT
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