The RBNZ's reference to ensuring "a broader....>

RBNZ: The RBNZ's reference to ensuring "a broader range of monetary policy tools

would be deployable in coming months" initially weighed on the NZD, although the

Bank offered little fresh in the way of insight on that front as it made

reference to previously outlined measures: "including a term lending facility,

reductions in the OCR, and foreign asset purchases, as well as reassessing the

appropriate quantum of the current LSAP." On the LSAP it noted that "the

Committee agreed that it is not yet clear whether the monetary stimulus

delivered to date is sufficient to meet its mandate... any expansion would need

to be driven by the economic outlook and assessment of the effectiveness of the

programme. A change in the size of the programme would also need to be of

sufficient magnitude to make a meaningful difference."

- The Bank tipped its cap to some positive developments, although noted that

they could be "short-lived given the fragile nature of the global pandemic

containment," as it remains focused on COVID-19 related downside risks.

- On the NZD it noted that "the appreciation of New Zealand's exchange rate has

placed further pressure on export earnings." NZD/USD has recovered from lows.