The Reserve Bank of New Zealand kept the Cash Rate unchanged at 0.25% today and increased its asset purchase program. The (LSAP) Large Scale Purchase Program has been expanded from 60 Billion to 100Billion NZD. Buying more LSAP enables the RBNZ to keep downward pressures on wholesale and retail rates. This is a significant boost as estimates had been between 75B and 90B. The RBNZ also agreed that additional monetary instruments remain active such as the deployment of negative interest rates and possible purchase of foreign assets. Implementing these tools will depend largely on the outlook for inflation and employment.
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