Monetary Policy Statement: More monetary stimulus provided

Monetary Policy Statement: More monetary stimulus provided

From rbnz.govt.nz

The Monetary Policy Committee agreed to provide additional monetary stimulus to the economy in order to meet its consumer price inflation and employment remit. The Committee agreed that the additional stimulus would be provided through a Funding for Lending Programme (FLP), commencing in December. The FLP will reduce banks’ funding costs and lower interest rates. The Committee will also continue with the Large Scale Asset Purchase (LSAP) Programme up to $100 billion, and retain the Official Cash Rate (OCR) at 0.25 percent in accordance with the guidance issued on 16 March. Progress has been made on the Bank’s ... (full story)

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RBNZ: Cash rate projections end in 1Q 2021 with OCR at 0.25%, policy will need to remain stimulatory for a long time -BBG #RBNZ $NZDUSD Nov 10, 2020 7:01pm

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RBNZ says International prices for New Zealand’s exports have remained resilient, although export returns continue to be partly offset by the New Zealand dollar exchange rate $NZD Nov 10, 2020 7:02pm

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RBNZ: Announces bank lending program beginning in December, prepared to provide additional support if necessary. -BBG $NZDUSD Nov 10, 2020 7:02pm

Added at 7:06pm

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RBNZ Progress has been made on the Bank’s operational ability to deploy an FLP and a negative OCR Nov 10, 2020 7:03pm

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aquavox

Nov 10, 2020 11:56pm

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stimulus , keeps interest rates low , and penalises savers to the benefit of banks and borrowers
stimulus is a an attempt by CB's to incentivise spending, and borrowing
stimulus i.e adding to the money supply by creating digital currency, dilutes the pre-existing monetary value in circulation
stimulus creates asset bubbles by investors choosing appreciating assets to safeguard their monetary pre-invested value.
stimulus is the prime reason why astute investors invest in appreciating property thus forcing up the value renters and first home buyers have to pay.
stimulus actually negates stated Government policy i.e to try and keep housing cost low
stimulus actually negates real inflationary effects on an economy, ( the 'inflation' calculation is a farce and does not take into account the big ticket items like buying a home, but of course all governments engineer ( falsify statistical inflation)
the list goes on, but after all i am not an economist .... does any one know of an honest one around?

Steamroller

Nov 11, 2020 7:29am

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By inflating asset prices it actually makes it more difficult for young people to be entrepreneurial because the cost of failure is too high. i.e. might as well get a corporate job to keep me in the game.