Reserve Bank of New Zealand on Wednesday - Monetary Policy Statement and Media Conference

The New Zealand Institute of Economic Research (NZIER) have posted their thnoughs on what the RBNZ should do.

  • The NZIER runs a 'shadow board' of analysts. The Shadow Board is independent of the RBNZ and does not represent what the RBNZ is going to do but rather what their view is the RBNZ should do.

From the report (in summary, link here for more if you wish:

  • Shadow Board members still considered current monetary settings as appropriate for the upcoming May meeting
  • attention turns to a tightening in monetary policy over the coming year
  • In the near term, members pointed to some uncertainty over how sustainable the recovery will be particularly in light of continued border restrictions. Hence members saw a cautious approach as justified for the upcoming meeting.

The Shadow Board sees tightening as more appropriate over the coming year.

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RBNZ statement due at 0200 GMT, news conference to follow.