RBNZ’s Orr: Again does not rule out negative rates

Dhwani Mehta FXStreet

The Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr reiterated on Tuesday that he doesn’t rule out negative rates.

He said that QE is more effective than negative rates for dealing with the virus shock.

Further comments

A central bank buying debt directly from the government issue is not something that will inspire confidence in markets.

Central banks get around this by buying sovereign debt from the market, not direct from the government press.

This comes after the RBNZ said earlier today, it is proposing the removal of mortgage loan-to-value ratio (LVR) restrictions in response to the economic downturn caused by the COVID-19 pandemic.

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NZD/USD remains under pressure, as the bears eye a break below the 0.6000 level amid dovish comments from the RBNZ Governor Orr and broad dollar strength. At the moment, the kiwi trades at 0.6010, down 0.37% so far.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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