fxstreet.com 23 Feb, 2021 13:15 am

Reserve Bank of New Zealand Preview

Reserve Bank of New Zealand Preview
The Reserve Bank of New Zealand (RBNZ) is scheduled to announce its Monetary Policy Statement this Wednesday at 01:00 GMT while Governor Adrian Orr’s

“We expect that the RBNZ’s commentary will strike a more constructive note on the economy.Despite that, we expect that the RBNZ will leave its monetary policy settings unchanged.We expect the RBNZ will keep the OCR at 0.We expect the RBNZ’s key message will be that it intends to keep monetary policy very stimulatory for an extended period, even if inflation pops higher in the near term.

That said, we expect the RBNZ will signal that removal of policy stimulus remains a long way off.We expect RBNZ weekly bond purchases to continue at ~NZD575M-600M per week to Q2'21 and for bond-buying to slow further after that.

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