RBNZ’s Ha: Negative rate decision contingent on the health of the economy

Reserve Bank of New Zealand Chief Economist Ha has argued that there is reasonably strong evidence internationally that negative rates help in stimulating credit demand.

Key notes

• Negative rate decision contingent on the health of the economy; if and when the time comes we have those tool available.
• The earliest we could implement negative rate operationally is early next year.
• Not hostage to exchange rate but welcome “helpful support” from that channel.
• Ha says asset purchase programme has been successful so far in lowering retail interest rates.