Further comments by RBNZ governor, Adrian Orr
- Interest rates could go negative before RBNZ thinks of alternate policy tools
- But for now, hard to ascertain anything
- NZ has capacity to respond to coronavirus impact
Again, he is playing the "we are flexible" card. I reckon this alludes to the fact that even if they cut rates later this month, it isn't going to be a major one. 25 bps looks the likeliest option but then again, they do have some room to go before zero rates.
