Questions On Reaction If Lockdown Persists

Governor Orr notes that the RBNZ is focused on medium-term inflation and employment matters, as well as the knock-on impact on demand when questioned on the policy response if lockdowns persist. He stressed that the RBNZ must keep moving and operate in a world of "uncertainty," noting that the Bank is happy to do that, "as signalled." All in all that sums up the meeting. Today's decision to hold the OCR at 0.25% sounds particularly cautious when weighed up against the RBNZ's general view of the economy, but holding off for one meeting is unlikely to change the future trajectory of monetary policy, as long as the local COVID situation remains relatively contained.