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Views Article – Sharenet Wealth

Australasia, Forex

RBNZ Governor reiterates negative interest rates a possibility

WELLINGTON, Aug 8 (Reuters) – New Zealand’s central bank governor said on Thursday that it was easily within the margin of errors of the bank’s forecasts that negative interest rates may be needed to stimulate the economy.

Adrian Orr also said the threat of U.S.-China trade tensions has lingered for too long, creating global economic uncertainty.

New Zealand’s central bank stunned markets on Wednesday by cutting interest rates a steep 50 basis points, and even flagged the risk of going nuclear by taking rates below zero, a radical shift that drove its currency to three-and-a-half year lows. (Reporting by Charlotte Greenfield, writing by Praveen Menon Editing by Sonya Hepinstall)


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