The policy statement is here:
And the NZD impact is here
This is a driver of the Kiwi$ higher: RBNZ projections indicate the cash rate may rise in the second half of 2022
From the meeting minutes, more info:
- economic activity in New Zealand has returned to close to its pre-covid-19 level
- committee agreed on the need for caution as domestic activity remains uneven across sectors of the economy.
- economy is experiencing pockets of both labour shortages and employment slack
- current level of employment remains below their estimates of the maximum sustainable level but expect it to converge to that level over time
- expect to see wage growth lift as firms compete for labour
- committee that the OCR is the preferred tool to respond to future economic developments in either direction
- weekly changes in the LSAP purchases do not represent a change in monetary policy stance
- risks to medium-term inflation were mitigated by ongoing global spare capacity and well-anchored inflation expectations.
- LSAP programme could not reach the $100bn limit by June 2022
- members reinforced their preference to maintain the current level of monetary stimulus until they were confident that the inflation and employment objectives would be met
- agreed this would require considerable time and patience.
