RBNZ Chief Economist: Not preparing banks for negative OCR at the moment
|The Reserve Bank of New Zealand's Chief Economist, Yuong Ha, explained that not preparing banks for negative OCR at the moment.
Key notes
- Banks would need to be ready if OCR were taken lower.
- Expanding QE is a decision for the MPC.
NZD/USD holding up
Analysts at ANZ Bank explained that the bird has "continued to drift as the USD has strengthened even in the face of appalling data – not that data is the focus at the moment."
NZ has a real shot at containing COVID-19 whereas it has gotten away in the US (and elsewhere), and our exports continue to hold up. That suggests Kiwi will hold up okay, even if it’s not a ‘risk on’ environment. Support is not far away and if broken, spells some exploration lower.
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