The members of the board of the Reserve Bank of New Zealand (RBNZ) have decided to keep the Official Cash Rate (OCR) stable at a historic low of 0.25% at their May meeting, as unanimously expected.
The RBNZ kept the size of its quantitative easing (QE) program at NZ $ 100 billion.
The financing for the loan program remains unchanged, the central bank has also said.
Additional comments:
The stimulus monetary configuration will be maintained until it is certain that inflation and employment targets were met.
Short-term economic data will remain highly variable.
The aggregate level of employment has also proven resilient, while fiscal spending continues to support national economic activity.
Business activity related to tourism continues to be affected by the absence of international visitors.
Medium-term inflation will remain below targets in the absence of stimulus.
It will also take time to observe the effect of new government housing policies on house price growth and thus economic activity.
Medium-term growth prospects remain similar to the scenario presented in February.
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