RBNZ Deputy Governor Geoff Bascand said the central bank will know more about how the coronavirus shock is playing out in three months. And, “we can re-evaluate if we need to do more or take the foot off the pedal a little bit in three months’ time.”
He noted that negative interest rates were one of many monetary policy options available. “For now, we think the best thing we should be doing is large scale asset purchases and we’ve expanded that. We could expand it further if needed,” he added.
Separately, Assistant Governor Christian Hawkesby said the central bank is open to using all tools including buying foreign bonds. He added RBNZ’s economic projections assumed that New Zealand Dollar will depreciate.
