In the last year we have seen the effects of Ukrainian drought, Russian log taxes, US oil spillages, Chilean earthquakes, and Brazilian and Queensland floods on primary production and prices. La Nina weather conditions could suggest more volatility ahead. New Zealand farmers are still recovering from the last commodity boom when some overcommitted, and are still looking to reduce the debt they built up.
The easing package comprised five measures: lowering the deposit facility rate, strengthening the forward guidance on the likely path of policy rates, restarting the net asset purchases within the asset purchase programme, changing the terms of the third series of targeted longer-term refinancing operations (TLTRO III) and introducing a two-tier system for reserve remuneration.