RBNZ Governor Adrian Orr said in an article that “monetary policy (the domain of central banks) has its limitations and needs to be partnered with broader fiscal and structural economic policy (the domain of the government of the day)… Providing certainty in uncertain times is a great skill to have, and central bankers world-wide are working hard to do just that.”
He added that “lower interest rates do not remove the global political uncertainty.” But they “offer greater certainty on the financial and investment front”. And, “businesses and governments should be re-assessing their hurdle rates on their investment projects. Low and stable global interest rates mean that what was once costly may now be a sound investment for the future.”
