This morning the RBNZ announced that it would conduct large-scale asset purchases of New Zealand Government bonds (‘QE’), following similar moves by global central banks last week, analysts at ANZ Research apprise.
“The RBNZ will purchase $30bn worth of NZGBs across the yield curve in the next 12 months. Given the size of the package, we think it will put to bed any questions about how effective it will be.”
“QE will help support the economy and soothe markets that have been dysfunctional. We believe this package will have an immediate and significant impact on the local bond market.”
“More QE, liquidity measures and market intervention may yet be needed. We also see a case for easing the counter-cyclical capital buffer to help facilitate the provision of credit.”
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.