After having significantly scaled back weekly asset purchases under the LSAP (Large Scale Asset Purchase), the RBNZ announced this morning that the programme will end on 23 July. The move comes amid a significant improvement in New Zealand's economic outlook, with activity back above pre-pandemic levels, and household spending and investments also proving robust. Most importantly, the Bank drastically changed its view on inflation. It introduced the notion that inflation spikes will likely be observed for 2Q and 3Q. While these spikes are expected to have a transitory nature, the statement reads: “more persistent ... (full story)