RBNZ left monetary policy unchanged today as widely expected. OCR is held at 0.25%, Large Scale Asset Purchase Programme at up to NZD 100B and Funding for lending program unchanged. Current monetary policy setting were seen as “appropriate” to achieve the central bank’s inflation and employment remit. But a “prolonged period of time” is needed before meeting the conditions of removing monetary stimulus.
In the Monetary Policy Statement, RBNZ said the economic rebound has been “stronger than expected”. But domestic recovery “has been uneven” while outlook is “highly uncertain”. “Significant stimulus is still required” and “interest rates are assumed to remain at historically low levels for an extended period.”
