New Zealand’s Finance Minister, Robertson, has said that the government and RBNZ have scope to respond if needed due to virus.
Key notes
- Risk of longer-term economic impacts from the virus.
- NZ economy is in a strong position to respond to the virus.
- The virus will have a serious impact short-term.
- It is responsible to plan for multiple scenarios.
FX implications
Market pricing for RBNZ implies a 30% chance of easing at the next meeting on 25 March, with a terminal rate of 0.68% (RBNZ OCR currently at 1.0%).
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Meanwhile, markets are turned into:
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