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RBNZ preview: Quietly monitoring house prices
The Reserve Bank of New Zealand's meeting on 14 April should be a rather uneventful one. The policy message will likely be very similar to the February meeting. Back then, the central bank stressed how the improvement in global and domestic conditions was not changing the fact that prolonged monetary stimulus was necessary to sustainably reach inflation (1-3%) and employment goals. Since then, the Bank has received only one important data input, which probably endorsed the need to maintain a dovish tone: GDP unexpectedly dropped 0.9% year-on-year (-1.0% QoQ) in 4Q20, falling short of central bank expectations of 0.3% ... (full story)