The RBNZ’s approach to communication has faced some criticism following last week’s cut in the OCR, which surprised many bank economists, leaving some confused and others plain flabbergasted. This is not an attempt to defend the RBNZ, but to look at the facts.
In our assessment, the main message from the Monetary Policy Statement was to reiterate that it is the outlook for future inflation that determines policy decisions. It is a reminder to remain focused on the economic signals – to avoid playing the man not the ball.
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