The Reserve Bank of New Zealand cut its cash rate well prior to the other global central banks. Greg was right on it:
Later:
- Federal Reserve acts on a Sunday evening to slash rates to near zero
- BoE Carney and Bailey comment on the coordinated global central bank cuts
- Here is the ECB on the global central bank co-ordinated move
- The Federal Reserve (and coordinated global actions) at a glance - what it means
Comments now from Reserve Bank of New Zealand Governor Orr:
- not contemplating negative interest rate at this point
- says negative impact of coronavirus on NZ economy is and will continue to be significant
- says NZ financial system remains sound and major financial institutions well liquidised and solid
- says it will very much be a case of monetary and fiscal policy working together
- says, on negative rates, most effective tool at this time will be large scale asset purchases
- says not all banks are ready for negative interest rates
- expecting growth and inflation to be lower
- virus is expected to have a sever impact on our people and our economy
