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

Ross J Burland FXStreet

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

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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