Reserve Bank of New Zealand policy announcement
- says more monetary policy stimulus provided
- launches funding for lending programme in December
- maintains large scale asset purchase programme at NZ$100 bln
- says progress made on bank's ability to deploy FLP and negative OCR
Those are the major points, the FLP is low-cost lending to banks (the RBNZ hoping will be passed on to customers)
More:
- agreed to provide additional monetary stimulus to the economy in order to meet its consumer price inflation and employment remit
- we expect an ongoing increase in unemployment as the economy adjusts
- says consumer price inflation is also projected to remain at the lower-end of the remit target range for a period
- says agreed that monetary policy will need to remain stimulatory for a long time
- says committee agreed it must remain prepared to provide additional support if necessary
- banking system is on track to be operationally ready for negative interest rates by year-end
- committee agreed that it was prepared to lower the OCR to provide additional stimulus if required
- committee reaffirmed that an FLP , a lower or negative OCR , purchases of foreign assets, and interest rate swaps remain under consideration
- Committee reaffirmed that an FLP, a lower or negative OCR, purchases of foreign assets, and interest rate swaps remain under consideration
Summary points via Reuters
I do not see much surprising in the above. While policy is on hold in today's announcement the plan is in place for more easing in December (FLP) and the Bank is keeping its options open and preparing for negative rates. All of this was telegraphed in the previews I posted.
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RBNZ Governor Orr is speaking in an hour, his press conference due at 0200 GMT
