NZGB bond programme increased at BEFU
New Zealand Debt Management (NZDM) updated the borrowing programme alongside the Budget Economic and Fiscal Update (BEFU). Government funding requirements have increased by a further NZ$12 billion compared to the Half Year Economic and Fiscal Update (HYEFU) in December, reflecting a weaker fiscal outlook than previously expected. The further increase in the bond programme takes place against a backdrop of already elevated issuance from a historical perspective.
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Outlook for Borrowers: Post April MPR
The Reserve Bank of New Zealand (RBNZ) held the Official Cash Rate (OCR) steady at 5.5% at the Monetary Policy Review (MPR) on Wednesday. The statement, accompanying the expected ‘on hold’ decision, indicated there is little change in the Bank’s assessment of the economy and inflation outlook from the February Monetary Policy Statement (MPS). The Monetary Policy Committee is ‘confident that maintaining the OCR at a restrictive level for a sustained period’ will return inflation to target this year.