The RBNZ held rates unchanged at 0.25% today, but the policy statement and the projections included in the Monetary Policy Statement fell on the hawkish side of the spectrum. Policymakers clearly indicated the recently announced lockdown in New Zealand as the reason why they have refrained from hiking rates already this month. Away from a reiteration of how the global and domestic Covid-19 situation continues to pose some risks to the economic recovery – and by extension to the timing of the tightening process – the RBNZ’s assessment of the economy was very upbeat, as the Bank acknowledged how the epidemic fall-out ... (full story)