RBNZ keep monetary policy steady, as expected

rbnz keep monetary policy steady as expected

Reserve Bank of New Zealand keeps the cash rate at 0.25%

LSAP ((large scale asset purchase programme) kept at NZD 100bn
FLP (funding for lending programme) unchanged 

RBNZ says that prolonged monetary stimulus remains necessary 


committee agreed it must remain prepared to provide additional
support if necessary
RBNZ says operational work to enable the OCR (Official Cash Rate) to be
taken negative if required is now completed
says committee agreed that monetary policy will
need to remain stimulatory until inflation is sustained at 2%
says economic outlook ahead remains highly

More, these from the minutes to the meeting:

to maintain monetary stimulus until it is confident that consumer
price inflation will be sustained around the 2 percent target
midpoint and employment is at or above its maximum sustainable level
committee expects a prolonged period of
time to pass before these conditions are met.
committee agreed that weekly changes in
the lsap do not represent a change in monetary policy
reduced government bond issuance was
placing less upward pressure on New Zealand government bond yields
committee agreed that it was prepared to
lower the OCR to provide additional stimulus if required.
 risks to the economic outlook are
balanced, in large part due to the anticipated prolonged period of
monetary stimulus…

Want to know more click here go to source.

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