Sept 21 (Reuters) - Reserve Bank of New Zealand:
* EARLY DISCOVERY OF VACCINES AGAINST COVID-19 HAS SUPPORTED A STRONGER-THAN-EXPECTED RECOVERY IN THE GLOBAL ECONOMY
* AUGUST MONETARY POLICY STATEMENT NOTED WE HAD MORE CONFIDENCE THAT EMPLOYMENT WAS AT ITS MAXIMUM SUSTAINABLE LEVEL
* DEMAND FOR OUR GOODS EXPORTS HAS FARED MUCH BETTER THAN DURING PREVIOUS GLOBAL DOWNTURNS
* ALSO BENEFITED FROM A ROBUST RECOVERY IN THE CHINESE ECONOMY, OUR LARGEST TRADING PARTNER
* MONETARY AND GOVERNMENT SPENDING POLICIES HAVE SUPPORTED A STRONG RECOVERY IN SPENDING.
* GOVERNMENT’S WAGE SUBSIDY SCHEME IS A POLICY THAT HAS BEEN PARTICULARLY EFFECTIVE IN SUPPORTING THE WIDER RECOVERY
* BUSINESS INVESTMENT HAS ALSO PICKED UP AS THE ECONOMY HAS RECOVERED
* LOOKING AHEAD, WE SEE THE LEVEL OF HOUSE PRICES AS UNSUSTAINABLE RELATIVE TO THEIR FUNDAMENTAL DRIVERS
* IN AUGUST, COMMITTEE AGREED THEIR “LEAST REGRETS POLICY STANCE IS TO FURTHER REDUCE MONETARY STIMULUS TO ANCHOR INFLATION EXPECTATIONS"
* THE DISRUPTION TO THE SUPPLY SIDE OF THE ECONOMY HAS ALSO BEEN MORE PROLONGED THAN ANTICIPATED
* THERE HAVE BEEN SIGNIFICANT DISRUPTIONS TO SUPPLY CHAINS, PARTICULARLY RELATED TO THE SHIPPING INDUSTRY
* GIVEN EMERGENCE OF TRANSMISSIBLE VARIANTS OF COVID-19, DISRUPTIONS TO MOVEMENT OF GOODS & PEOPLE GLOBALLY LOOKS LIKELY TO CONTINUE OVER MEDIUM TERM
* INITIAL HEALTH MEASURES WERE ABLE TO CONTAIN VIRUS, WITH MOST HOUSEHOLDS & BUSINESSES ABLE TO RETURN TO NORMAL ACTIVITIES SOONER THAN FEARED
* NATIONAL LEVEL HOUSEHOLD INCOMES WERE LARGELY MAINTAINED THROUGH COVID-19 LOCKDOWN PERIODS
* THE RECOVERY PHASE HAS ALSO SEEN HOUSE PRICES GROW RAPIDLY FROM ALREADY ELEVATED LEVELS
* THERE HAS BEEN STRONGER THAN EXPECTED DOMESTIC ECONOMY AND ASSOCIATED IMPROVEMENT IN JOB SECURITY
* COVID-19 HAS ALSO MADE IT MORE DIFFICULT FOR FIRMS TO SOURCE LABOUR
* PRESSURES ON CAPACITY WOULD FEED THROUGH INTO MORE PERSISTENT INFLATION PRESSURES OVER THE MEDIUM-TERM
* IN A GOOD POSITION TO NAVIGATE THE PERIOD AHEAD, WITH THE LABOUR MARKET OPERATING AT MAXIMUM SUSTAINABLE EMPLOYMENT
* NOTED THAT MONETARY POLICY RESPONSE WOULD BE REQUIRED FOR FUTURE HEALTH LOCKDOWNS IF THERE WAS MORE ENDURING IMPACT ON INFLATION, EMPLOYMENT Further company coverage: (Reuters.briefs@thomsonreuters.com)