RBNZ Governor Adrian Orr said in a speech that some people view global low interest rates as “signs of concern”. But he added “they can also be an opportunity” as “we are confident that rates will remain low for a number of years, providing a great environment to invest.”
Orr said “the good news for New Zealand, unlike many other OECD economies, is that our government’s books are in good shape, with room to expand investment, and there is already a strong fiscal impulse underway from public spending and investment.” Also, “we have the trifecta of sound government finances, clear infrastructure demands, and low hurdle rates for investing. The same can be said for corporate balance sheets in New Zealand. With relatively low levels of debt, and ongoing demand for goods and services, our businesses are well positioned.”
