In a Bloomberg TV interview, RBNZ's Governor Orr says that their strategy is to keep yield curve low, flat.
Does not want to go to negative rate at this point
Prepared to go to negative rate but a lot later.
Negative Cash Rate Remains One Option For RBNZ.
The comments follow last week's meeting whereby the Reserve Bank of New Zealand doubled its quantitative easing programme as the COVID-19 pandemic wreaks havoc on the economy.
The operational challenge still remains with some banks still working on being able to actually operate with negative official cash rate and negative wholesale rates,
– Governor Adrian Orr said at a parliamentary select committee meeting.
The RBNZ also reaffirmed its forward guidance for the cash rate to remain at 0.25% until early 2021, but said negative rates "will become an option in future."
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