';
Views Article – Sharenet Wealth

Australasia, Forex

RBNZ chief says negative interest rates “within the realms of possibility”

WELLINGTON, Aug 7 (Reuters) – New Zealand’s central bank governor said on Wednesday there was a possibility of using negative interest rates to stimulate the economy, after the bank had earlier slashed the official cash rate to a record low.

“It is easily within the realms of possibility that we might have to do negative interest rates,” Governor Adrian Orr told a news conference after announcing the bank was slashing rates to a record low of 1.0%.

However, he added the hefty 50 basis-point cut, which caught markets off-guard, reduced the possibility of having to use negative interest rates as it would stimulate the economy.

(Reporting by Charlotte Greenfield Editing by Shri Navaratnam)


© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.