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."
- 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.
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