Reserve Bank of New Zealand’s Bascand says that the resurgence of virus in NZ is a big risk to its outlook.
Key notes
- Would have to consider more monetary stimulus if there are periods of resurgence and longer lockdowns.
- Banks are resilient and have good strength to get us through this period for now.
- Will probably do a combination of negative interest rates and ‘funding for lending’ programme if more stimulus needed beyond QE extension announced.
- Sees a fairly soft, low growth world for a period of time.
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