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 key elements from the RBNZ's statement caused a reaction in the markets?

How has the RBNZ's asset purchase program changed, and what implications does this have for the economy?

What are the potential future actions the RBNZ might take regarding the cash rate?

What factors could lead the RBNZ to consider moving into negative cash rate territory?

How does the path of the Kiwi economy relate to the measures adopted to combat the virus?