Breaking: RBNZ’s Orr: Not contemplating negative interest rate at this point, Kiwi drops

Following the overnight rate cut announcement by the Reserve Bank of New Zealand (RBNZ), Governor Orr is on the wires now, noting that they are not contemplating a negative interest rate at this point.

Further quotes

Negative impact of coronavirus on NZ economy is and will continue to be significant.

NZ financial system remains sound and major financial institutions well liquidised and solid.

It will very much be a case of monetary and fiscal policy working together.

On negative rates, most effective tool at this time will be large scale asset purchases.

Not all banks are ready for negative interest rates.