An economist says the Reserve Bank's signalling an exit strategy from its reaction to Covid-19.
The central bank will halt its bond buying programme earlier than expected to reduce economic stimulus, and has kept the Official Cash Rate at 0.25 per cent.
Cameron Bagrie from Bagrie Economics told Mike Hosking it's the start of a long unwind by the central bank.
“Withdrawing from what can be described as some pretty extraordinary monetary policy stimulus, they are taking their foot off the accelerator but they’re not yet tapping on the brake, they’re a long way away from that.”
Cameron Bagrie says printing money is the first cab off the rank, cheap money for banks will be second and reducing the OCR will be the third.
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