Below is a link to a very good interview with RBNZ Governor Adrian Orr on Radio NZ ‘Morning Report’ programme. Loads of good material on monetary policy – useful for discussion purposes with my A2 class today – online.
The Monetary Policy Committee decided to implement a Large Scale Asset Purchase programme (LSAP) of New Zealand government bonds. The programme will purchase $30 billion of New Zealand government bonds, across a range of maturities, in the secondary market over the next 12 months. The programme aims to provide further support to the economy, build confidence, and keep interest rates on government bonds low. The low OCR – 0.25%, lower long-term interest rates, and the fiscal stimulus recently announced together provide considerable support to the economy through this challenging period.