RBNZ: Removal of monetary policy stimulus is expected over time

Following are the key headlines via Reuters from the summary of the Reserve Bank of New Zealand’s October monetary policy statement.

Monetary stimulus further reduced.

Appropriate to continue reducing the level of monetary stimulus

Cost pressures are becoming more persistent

Current covid-19-related restrictions have not materially changed the medium-term outlook for inflation and employment

Capacity pressures remain evident in the economy

Economic activity will recover quickly as alert level restrictions ease

Headline cpi inflation is expected to increase above 4 percent in the near term

Inflation to return towards 2 percent midpoint over the medium term.

Removal of monetary policy stimulus is expected over time.

more to come ...