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Two wrongs can make a right – Preview of RBNZ February 2021 Monetary Policy Statement
At next week’s Monetary Policy Statement, 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. True, the economy has proved resilient. But the RBNZ’s stimulus measures have been less effective than anticipated, and the medium term inflation outlook is still very low. So we expect the RBNZ will keep the OCR at 0.25%, the Large Scale Asset Purchase programme (LSAP) cap will remain at $100bn for now, and the Funding for Lending Programme (FLP) will remain in place. We expect the RBNZ’s ... (full story)