Wednesday, 30th September, 2020

Last week, the RBNZ released its September monetary policy review. For those aficionados who recall the previous monetary policy statement, it was playing a very familiar song, with the OCR on hold at 0.25%, and the Large-Scale Asset Purchase Programme still pegged at $100 billion. The RBNZ kept singing the blues, highlighting the downbeat economic global outlook, and “unprecedented contraction” in Q2 GDP. The bank continued to highlight its three favourite options for additional monetary stimulus, with a ‘Funding for Lending Programme’ (FLP) – a cheap form of direct lending to banks, rounding out the trio with a negative OCR and foreign asset purchases. Read the full report here.