RBNZ Governor Adrian Orr said the improved growth and inflation projections in the latest Monetary Policy Statement released this week “is a very bod assumption”. The central bank has been “at pains to explain to people that we are creating scenarios, not projections of certainty,” he said.
“If the economy continued to grow and do what it’s doing, well that’s a beautiful world, but that’s a big if,” Orr added. “So today’s news around Covid just puts it back into perspective. Be careful out there, be prepared, don’t run around on predictions.”
Orr has the new FLP is “such an invasive way into the banking sector to provide very low cost of funding”. He’ll be on watch to make sure that’s passed on to borrowers and investors.” As for the further easing, Orr said purchases of foreign assets is “not a preferred option” that would not have a signifi cant impact “really in the long term”.
“We are very comfortable where we are with the funding for lending and the quantitative easing program we’re doing at present.”
