RBNZ's Statement Was Quite Dovish, RBC's Ong Says

The RBNZ issued a dovish statement, doubling its asset purchase program to 60 billion and leaving the cash rate unchanged, while not ruling out a future negative cash rate. Markets reacted with a drop in currency and bond yields. The potential for a negative cash rate depends on further economic deterioration. New Zealand's quick easing of COVID-19 restrictions and global factors, especially its relationship with Australia, are crucial to its economic path.

What significant change did the RBNZ make to its asset purchase program?

• They eliminated it entirely.

• They kept it unchanged.

• They doubled it to 60 billion.

• They reduced it to 30 billion.

What has the RBNZ not ruled out for the future regarding the cash rate?

• Eliminating the cash rate.

• Implementing a negative cash rate.

• Keeping it unchanged.

• Increasing it significantly.

How did the market react to the RBNZ's announcement?

• The currency and bond yields increased.

• The currency remained stable, but bond yields increased.

• The currency dropped, and bond yields fell.

• There was no significant market reaction.

What might prompt the RBNZ to consider a negative cash rate?

• A significant improvement in the economic outlook.

• Further deterioration in the economic outlook.

• Stable economic conditions.

• A decrease in global trade.

What is a key factor influencing New Zealand's economic path?

• The amount of foreign investment.

• The number of tourists visiting the country.

• The level of government debt.

• The success of easing virus restrictions.