RBNZ reduces rates by 75bp in emergency meeting
Central bank says future purchases of government bonds preferable to lower rates
The Reserve Bank of New Zealand sharply reduced rates in an emergency policy meeting today (March 16).
As the Federal Reserve slashed the federal funds rate by 100bp to the record low of 0–0.25%, the RBNZ’s monetary policy committee took the official cash rate in New Zealand below 1% for the first time in its history.
Rate-setters reduced rates by 75bp to 0.25%. Additionally, they agreed unanimously to maintain the rate at this level at least for 12 months.
“The negative economic implications
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