VIEW: J.P.Morgan believe that "the prospect....>

RBNZ: VIEW: J.P.Morgan believe that "the prospect for new tools being deployed

in H220 is rising, with foreign asset purchases the most conspicuous given that

every other part of the unconventional policy package so far seems to have been

designed with a weaker exchange rate in mind, and that hasn't been achieved. The

framework for foreign asset purchases remains basically unwritten, and clearly

would be very different to the "traffic light" FX intervention framework used in

the past. It would be more of a principal investment, which extends the existing

monetary policy goals of the LSAP program. We think foreign asset purchases are

becoming likely some time in 2H."