RBNZ left stimulatory monetary policy unchanged as widely expected, with OCR at 0.25% and Large Scale Asset Purchase and Funding for Lending program unchanged. It maintained that to meet the requirements of sustainable 2% inflation and maximum employment will “necessitate considerable time and patience”. The committee is also “prepared to lower the OCR if required”.
The medium-term growth outlook was “similar” to the scenario presented in the February statement. Outlook remains “highly uncertain, determined in large part by both health-related restrictions, and business and consumer confidence.” The would be some temporary factors for near-term price pressures, including global supply chain disruptions and higher oil prices. But medium-term inflation and employment will “likely remain below its remit targets in the absence of prolonged monetary stimulus.”
