New Zealand: RBNZ takes a necessary step – Westpac

This morning the Reserve Bank of New Zealand (RBNZ) announced that it will begin large-scale purchases of government bonds, analysts at Westpac Institutional Bank inform.

Key quotes

“The RBNZ plans to purchase up to $30bn of government bonds over the next year to soften the impact of the Covid-19 outbreak and keep longer-term interest rates under control.”

“This does not change our forecast of a 3.1% decline in GDP. Rather, it was a necessary step to prevent an even worse outcome.”