Search ForexCrunch

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.