• The Reserve Bank’s 50bp OCR cut was at the modest end of expectations, and also gave a very clear signal that it is not prepared to cut the OCR much further.
• The RBNZ will be taking a softly-softly approach to cutting interest rates from now on, cutting by 25bp each meeting.  But the risks remain skewed to the downside.  The RBNZ is forecasting a much earlier end to the recession and a very rosy rebound compared to most other forecasters.
• RBNZ Governor, Alan Bollard, revealed to the New Zealand Parliamentary Finance and Expenditure Select Committee on 4 March, the RBNZ were in the process of reducing the RBNZ’s foreign exchange position from $5 billion down to a benchmark rate of $1 billion

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