RBNZ Chief Economist and External MPC Member Yuong Ha, speaking on:
- Latest Monetary Policy Statement Explained Q&A
I doubt this will add much to what we have already been positing on the statement from last week, but you never know.
(ps. this from yesterday on the currency implications: RBA vs. RBNZ - AUD/NZD being driven by divergent policy.)
- Reimposition of Auckland lockdown played a part in August policy decision and projections
- Watching labour market very closely
- asset purchase programme has been successful so far in lowering retail interest rates
- not hostage to exchange rate but welcome 'helpful support' from that channel
(what that bolded jumble means is the RBNZ would like a lower nZD)
More:
- negative rate decision contingent on the health of the economy; if and when the time comes we have those tool available
- says the earliest we could implement negative rate operationally is early next year
- says reasonably strong evidence internationally that negative rates help in stimulating credit demand
