Ex-RBNZ Chief Economist Zollner: New Zealand needs less QE than previously thought
|New Zealand’s economy needs less fiscal or monetary policy support than previously thought, former Reserve Bank of New Zealand (RBNZ) Chief Economist Sharon Zollner said in an MNI interview.
Additional quotes
“Lower-than-expected government borrowing and economic recovery mean the RBNZ is unlikely to reach the NZD100 billion cap on its bond-buying program by the target of June 2022. “
"The QE program is fading into the background as the government issues few bonds and the economy recovers.”
Commenting on this week's RBNZ decision, Zollner said the bank has "the luxury of waiting before they make the next call.”
While economic data was mixed, 2021 would "not be a deflationary year", but at the same time "the hurdle to either raise or cut rates is high."
"There is a high tolerance for inaction.”
Related reads
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.