Reserve Bank of New Zealand Governor Orr wrote a piece for NZ media on Sunday, repeating his messages:
- Reserve Bank can keep monetary support going for as long as necessary through QE and other tools
- New Zealand is in a globally-enviable fiscal position with significant headroom
Orr does not sugar coat what is ahead:
- Some businesses will fail
- unemployment will rise
- We will also have to make tough decisions at the Reserve Bank when it comes to a specific firm's viability. The financial system is strong but we do not run a 'zero failure' regime.
Orr's message has broader applicability.
