Reserve Bank of New Zealand Chief Economist Yuong Ha says monetary policy stance still holds despite delta outbreak
- says delta variant raises some economic uncertainty but not a 'game-changer'
- there is no pressure to act on monetary policy
- says currency is performing as it normally does
- says New Zealand going into nationwide lockdown at a better economic starting point
The comments come after the RBNZ held its cash rate unchanged at its meeting last week. In the weeks and days leading up to the decision, there was a near-unanimous consensus the bank would hike the rate by 25bps and even 50bps was a not unusual view. However, the fresh outbreak of COVID-19 in the country just prior to the Bank's meeting saw analysts trash their calls for a hike. The RBNZ duly held steady.
