Reserve Bank’s decisions to cut OCR welcomed to support economy

“The Government, through the Treasury, and the Reserve Bank have been working closely together to coordinate our actions as we respond to the economic impacts of COVID-19,” Grant Robertson said.


Devdiscourse News Desk | Wellington | Updated: 16-03-2020 07:38 IST | Created: 16-03-2020 07:38 IST
Reserve Bank’s decisions to cut OCR welcomed to support economy
The Reserve Bank’s OCR cut and actions, such as the delay to new capital requirements to encourage lending were announced Monday morning. Image Credit: Wikimedia
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  • New Zealand

Finance Minister Grant Robertson says the Reserve Bank’s independent decisions announced this morning is welcome to support the economy, with reports already that banks are looking to pass the OCR cut on to customers.

“The Government, through the Treasury, and the Reserve Bank have been working closely together to coordinate our actions as we respond to the economic impacts of COVID-19,” Grant Robertson said.

“The global outbreak of COVID-19 has had a significant impact on the world economy, which has fed through to New Zealand. We are working together – all arms of Government, business groups and unions – to protect jobs and businesses by cushioning the impact this global outbreak has on our economy.”

The Reserve Bank’s OCR cut and actions, such as the delay to new capital requirements to encourage lending were announced Monday morning. The Government’s significant, multi-billion dollar fiscal response will be announced on Tuesday.

“New Zealand is in a strong position to respond to the economic impacts of COVID-19. Government surpluses and low debt put us in good shape to invest in the economy to support businesses and workers, and the Reserve Bank also had more room than many other countries around the world to cut interest rates.”

(With Inputs from New Zealand Government Press Release)

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