Reserve Bank of New Zealand Governor Orr writing in NZ media on Sunday.
Some of his key points:
- We cut the Official Cash Rate from 1 percent to 0.25 percent and committed to keep it there for at least the next year
- We also gave the banks a clear go ahead to use the capital they have stored … We estimate this gives banks an extra $47 billion of lending capability … They have a similar amount again to lend if needed without reaching their minimum capital reserves.
- we are ready to act further, with more firepower in reserve
- The government's recent fiscal measures including wage subsidies - on top of New Zealand's already significant welfare system - will support people through this period.
- We've also made provisions to ensure there is plenty of cash available for people to access all around New Zealand under all conditions.
Similar steps have been taken by central banks around the globe.
Latest on the fiscal side, US and Germany:
- Coronavirus - German fin min Sholz flags emergency budget of more than EUR150b
- Coronavirus - White House Economic Advisor Kudlow says stimulus package under negotiation around 2tln USD
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