WELLINGTON, March 16 (Reuters) - New Zealand’s Central Bank Governor said the bank was not contemplating negative interest rates at this point after slashing the benchmark rate to a record low 0.25%.
Adrian Orr added the most effective tool at this time will be large scale asset purchases.
“Not all banks are ready for negative interest rates,” he told a media conference after the surprise move.
The Reserve Bank of New Zealand (RBNZ) slashed interest rates by 75 basis points on Monday, sinking the country’s currency, as it prepared for an impact on the economy from the coronavirus outbreak. (Reporting by Praveen Menon)