Reserve Bank of New Zealand’s quarterly monetary policy statement released on March 8th breaks no new ground as far as the domestic economic situation is concerned. Its concern over the rich valuation of New Zealand dollar comes through clearly. Other than that, this paragraph on the Eurozone situation might not be well received in Frankfurt or in Brussels but is well articulated:
There is no guarantee that the recent ECB policy measures will have a lasting impact on confidence. Financial market sentiment remains fragile and conditions could change rapidly; the LTRO does not address the euro area’s structural challenges. Ongoing fiscal austerity and growth-enhancing reforms are necessary to put government debt on a sustainable path in a number of economies. Reforms are also necessary to address the competitiveness and productivity disparities that underlie macroeconomic imbalances across the region. Any adjustment costs associated with reform will weigh on euro-area growth over the projection horizon.