Board members once again saw a reduced need for negative OCR and further QE over the coming year – NZIER

In its latest report, the Shadow Board of the New Zealand Institute of Economic Research (NZIER) sees less need for further stimulus.

The board members generally remain skeptical about the effectiveness of a negative OCR to stimulate the economy despite highlighting the coronavirus (COVID-19)-led challenges for New Zealand

FX implications

While the Monetary Policy Shadow Board is independent of the Reserve Bank of New Zealand (RBNZ), it aims to encourage informed debate on each interest rate decision. As a result, the update makes the case of Wednesday’s RBNZ interesting. That said, NZD/USD fails to keep the week-start gap to the north while easing to 0.6790 amid the initial hours of Monday’s trading.