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The Reserve Bank of New Zealand’s (RBNZ) monetary policy decision was accompanied by the minutes of the meeting, which showed that the board members reaffirmed that funding for lending programme (FLP), a lower or negative OCR, purchases of foreign assets, and interest rate swaps remain under consideration.

Additional points

Members agreed a lower OCR would be complementary to its other monetary policy tools, and that it was prepared to lower the OCR to provide additional stimulus if required.

Committee endorsed staff advice to continue front-loading purchases under asset purchase programme.

Committee agreed that providing term funding at rates near the OCR via an FLP would lower funding costs, borrowing costs.

The committee maintained its view that a package of an FLP and a lower or negative OCR could provide an effective way to deliver additional monetary stimulus.