Earlier remarks from Reserve Bank of New Zealand Governor Orr are here:
More now (summary via Reuters) - bolding is mine
- says effective zero bound for rates is far from most likely outcome, can't be ruled out
- steps being considered include forward guidance, negative rates, rate swaps
- says could purchase domestic government bonds to lower rates, flatten yield curve
- says possible steps include purchase of foreign currency or assets to reduce the nzd exchange rate
- could provide collateralised long-term loans to banks to support policy
- says all tools would be more effective when combined with government measures
- says will need to account for international monetary and fiscal responses at next policy meeting
- says need to be considered and realistic as to how effective any potential change in rates will be in buffering the economy
- will continue using conventional policy until it is exhausted, i.e. when the OCR reaches zero
(OCR is the Official Cash Rate, ie the cash rate set byu the RBNZ at meetings).
Note this:
- will need to account for international monetary and fiscal responses at next policy meeting
The RBNZ meet on March 25 - if they are going to take account of monetary policy responses from other central banks then they will cut the cash rate. .
