March 10 (Reuters) - The Reserve Bank of New Zealand (RBNZ) still does not need to use alternative monetary policy but is considering steps to ensure strong and sustained economic growth, Governor Adrian Orr said in a speech on Tuesday.
The RBNZ will continue using its official cash rate, currently at 1.00%, until it reaches the zero lower bound, Orr said.
He added that the chance that the short-term interest rate would be 1% lower than now in two years’ time was around 20%. That means while an effective zero bound was far from the most likely outcome, it could not be ruled out, Orr said. (Reporting by Swati Pandey; Editing by Christian Schmollinger)