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MNI BRIEF: New Covid-19 Lockdown Keeps Rates On Hold At RBNZ

MNI (Sydney)
SYDNEY (MNI)

The Reserve Bank of New Zealand held the Official Cash Rate unchanged at a record low 0.25% on Wednesday, citing the imposition of a nationwide lockdown because of new Covid-19 cases

The RBNZ had been widely expected to hike rates by as much as 50 basis points in response to the overheating NZ economy, but the sudden new lockdowns after new Covid-19 cases on Tuesday swayed the decision.

In its statement, the RBNZ said that under its "least regrets" policy stance it was inclined to "further reduce the level of monetary stimulus" to control inflation and contribute to sustainable employment.

The Monetary Policy Committee agreed, however, to keep the OCR unchanged "given the heightened uncertainty with the country in lockdown."

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com

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