Reserve Bank of New Zealand Governor Orr and Assistan Gov Hawkesby speaking, parliamentary committee.
Orr:
- banks went into the shock in a strong position
- COVID-19 economic shock is a fiscal policy challenge
- monetary policy is a support player to fiscal policy
Hawkesby:
- monetary policy cannot offset the virus, can soften the blow to the economy
The RBNZ have slashed rates and bought bonds (as part of QE) in response to the virus impact. The NZ govmt is providing fiscal support.
More (Orr):
- Haven't ruled out negative interest rates
- more direct financing possible
Hawkesby:
- QE program equates to 150bps of easing (says ballpark estimate)
