"The severe global economic disruption.........>

RBNZ: "The severe global economic disruption caused by the COVID-19 pandemic is

persisting, leading to lower economic activity, employment, and inflation abroad

and in New Zealand. The negative economic impact on New Zealand is exacerbated

by the required international border restrictions, as the vast majority of the

world battles to contain the pandemic. The appreciation of New Zealand's

exchange rate has placed further pressure on export earnings. The main support

for the economy in this environment is appropriately being provided through

increased fiscal spending. However, monetary policy will continue to provide

significant support. As outlined in our May Statement, the balance of economic

risks remains to the downside. The LSAP programme aims to continue to reduce the

cost of borrowing. Retail interest rates have declined with lower wholesale

borrowing costs. It remains in the best long-term interests of the banking

sector to promptly maximise the effectiveness of our LSAP programme. The

Monetary Policy Committee is prepared to provide additional stimulus as

necessary. As well as potentially expanding the LSAP programme, the Committee

continues to prepare for the use of additional monetary policy tools as needed."