Reserve Bank of New Zealand monetary policy statement

  • Cash rate unchanged
  • Funding for Lending program unchanged
  • Large scale asset purchase program unchanged

RBNZ projections indicate the cash rate may rise in the second half of 2022

  • says to maintain stimulatory monetary settings until it confident that inflation and employment targets achieved
  • says near-term economic data will continue to be highly variable
  • aggregate level of employment has also proved resilient, while fiscal spending continues to support domestic economic activity.
  • tourism-related business activity continues to be affected by the absence of international visitors
  • medium term inflation employment to remain below remit targets in the absence of stimulus
  • effect of the government's new housing policies on house price growth and hence economic activity will also take time to be observed
  • our medium-term outlook for growth remains similar to the scenario presented in the February
  • we remain cautious however, given ongoing virus-related restrictions in activity,
  • price pressures on businesses are likely to be temporary and are expected to abate over the course of the year.

More here at the RBNZ site

Governor Orr speaks at 0300 GMT at his post-statement press conference.

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Background to this meeting:

Reserve Bank of New Zealand monetary policy statement governor orr