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Review - February 2021: Keeping Options Open

RBNZ
MNI Point of View:
  • The main challenge faced by the Reserve Bank was striking a fine balance between acknowledging a solid run of data readings while avoiding any tightening commitments. Unsurprisingly, the main monetary policy settings – the OCR as well as LSAP and FLP parameters – were left unchanged and the Committee focused on cautiously brushing away nascent hawkish speculation without losing credibility. Its preferred way out of this conundrum was by keeping a range of options on the table, even when it meant leaving some questions unanswered.
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