Reserve Bank of New Zealand posts earlier:
- RBNZ maintains cash rate, LSAP unchanged
- NZD up to a fresh session high following the RBNZ announcement
More, these from the minutes (Headlines via Reuters)
- members agreed monetary policy will need to provide significant economic support for a long time to come
- members also agreed they are prepared to provide additional stimulus
- members agreed a lower OCR would be complementary to its other monetary policy tools, and that it was prepared to lower the OCR to provide additional stimulus if required
- committee endorsed staff advice to continue front-loading purchases under asset purchase programme,
- committee agreed that providing term funding at rates near the OCR via an FLP would lower funding costs, borrowing costs
- committee reaffirmed that a funding for lending programme (FLP), a lower or negative OCR, purchases of foreign assets, and interest rate swaps remain under consideration
- the committee maintained its view that a package of an FLP and a lower or negative OCR could provide an effective way to deliver additional monetary stimulus
- outlook for inflation and employment remained subdued
- there is substantial uncertainty about the future spread of COVID-19 both domestically and globally, and how economic, health, and social activity will adapt
- some members noted it is harder to estimate what the maximum sustainable level of employment is under these conditions
- committee reached a consensus to hold rate, maintain LSAP programme of max nz$100 bln by June 2022
- also reached consensus to direct the bank to prepare to have an FLP ready to deploy before the end of calendar year
