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MNI RBNZ Preview – April 2021: Bubble, Bubble, Housing Trouble

MNI Point of View:

  • While the Monetary Policy Committee have a lot to digest, policymakers are set to take a breather and leave monetary policy settings unchanged. Recent developments have muddied the waters rather than provided any clear guidance for the RBNZ, which makes the Reserve Bank's hitherto preferred strategy of keeping all options open a reasonable choice. There will be no press conference and no updates on economic forecasts, so the most we can realistically expect on Wednesday are subtle tweaks to the MPC's language, reflecting the latest housing market dynamics, mixed economic data, and the launch of the trans-Tasman travel bubble.
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