Figure 1 Shadow Board considers tightening as more appropriate over the coming year - For further information, please contact:

New Zealand Institute of Economic Research (Inc) Media release For release 10am Monday 24 May 2021 NZIER’s Shadow Board sees stronger case for tightening While Shadow Board members still considered current monetary settings as appropriate for the upcoming May meeting, attention turns to a tightening in monetary policy over the coming year. [...] Some members pointed to the slowing in bond purchases by the Reserve Bank under its Large-Scale Asset Purchase programme (LSAP) that was already underway, and considered an increase in the Official Cash Rate after the LSAP programme was wound down as appropriate for the coming year. [...] Tactically the RBNZ will not Stephen Toplis want to scare the horses but its objectives are close to being met so the need for the current degree of stimulus to be maintained is waning rapidly. [...] The Reserve Bank is clearly looking into the use of Debt To Income ratios, which is the remit of financial stability (not MPS). [...] NZIER Shadow Board 3 About the NZIER Monetary Policy Shadow Board NZIER’ Monetary Policy Shadow Board is independent of the Reserve Bank of New Zealand.