RBNZ: Doesn't see a 'significant' decrease in cash rate

Joshua Gibson FXStreet

The Reserve Bank of New Zealand (RBNZ) is out with a note on 'unconventional monetary policy', or policy measures since the financial crisis of 2008-09.

Key highlights

RBNZ sees significant room to ease in "conventional" ways.

Does not project a significant decrease in the overnight cash rate.

The RBNZ believes conventional policy remains effective.

But, the OCR could be lowered into 'modestly negative' territory.

Specific targeting of term lending facilities could also be introduced.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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