RBNZ Orr: We entered the crisis with banks in a strong position

Reserve Bank of New Zealand governor Adrian Orr has said, "we entered the crisis with banks in a strong position." Hawkesby also crossed the wires saying, "Monetary policy can't offset virus but can soften the blow."

Key comments

• Orr: Economic shock is a fiscal policy challenge.
• Orr: Monetary policy is a support player to fiscal policy.
• Orr: Have not ruled out negative interest rates.
• Orr: At the end of the beginning for monetary stimulus.
• Orr says negative rates still on the table, more direct financing possible.
• Says domestic demand to be sluggish even if NZ comes out of lockdown fully.
• RBNZ says IMF has some rosy assumptions about how quickly countries can get out of lockdown.
• RBNZ assistant gov Hawkesbury economic activity in NZ could be 35% below normal.
• RBNZ gov Orr says without QE would be facing deflation.
• RBNZ gov Orr says NZ banking system in much stronger position than during GFC.

Meanwhile, we await a speech from Prime Minister Ardern which will be in focus today as well which will detail what businesses will be able to operate under level 3.

• NZD/USD remains offered below 0.6000 amid risk-off