The Reserve Bank left the cash rate unchanged at 0.25% at today’s review, in light of the move to a Covid Alert Level 4 lockdown in the last 24 hours. This was as we expected, as per our update yesterday evening. • The RBNZ still sees a need to lift interest rates, and would undoubtedly have done so today were it not for the new outbreak. • The statement emphasised the strength of domestic demand and the extent of capacity pressures, particularly in the labour market. • The projected OCR track rose to 0.6% by the end of this year, rising to just above 2% over the next few years. • The RBNZ repeated its statement from ... (full story)