The Reserve Bank of New Zealand (RBNZ) Chief Economist Yuong Ha said during the post-monetary policy press conference, migration is expected to be zero or very low for some period.
He added that therefore it is not unreasonable to expect house price falls.
In March, Ha had hinted that “the QE program will be ready for the month of May, if needed.”
The RBNZ kept the key rate on hold at 0.25% at its monetary policy meeting held earlier this Wednesday while almost doubling the QE size and signalling towards negative interest rates as a policy option in the future.
NZD/USD keeps falling
The selling interest around the kiwi dollar remains unabated amid the RBNZ dovishness, as NZD/USD attacks 0.6000, at the time of writing. The spot sheds over 1%.
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