BNZ on the Reserve Bank of New Zealand policy moves moves eaelri today.
ICYMI (read from the bottom up for chronology):
- ANZ says the RBNZ has less justification for rushing into a negative OCR
- RBNZ (finally) gives an indication of the size of FLP program: 28bn NZD
- RBNZ Gov Orr says NZ domestic economic activity has been more resilient than earlier assumed
- RBNZ leaves cash rate unchanged, LSAP NZD100bn
BNZ out with their call now .... this is the bottom line:
- negative rates don’t seem necessary
That is a big change from what was though would happen in New Zealand and it's ent the NZD higher during the session since the RBNZ.
The BNZ note is details, but here is their summary:
- RBNZ eases further
- Funding for Lending Programme this month's tool
- Easier capital requirements play their part
- But RBNZ sees less need for more
- And negative rates don't seem necessary
A little more:
- if the positive vaccine progress becomes even more positive then the RBNZ will be even less inclined to ease monetary policy
- So it’s now back to data watching
- The balance of risks remains on the negative side but the risk profile is, at least for now, far more evenly balanced than it previously was
