The Reserve Bank of New Zealand slashed its official cash rate by 75 basis points on Monday, in response to growing concerns over the coronavirus outbreak.RBNZ governor Adrian Orr.The bank cut the official cash rate to 0.25 per cent. The monetary policy committee agreed unanimously to keep the OCR at this level for at least 12 months, the bank said in its statement.
The negative impact from the virus on New Zealand's economy is, and will continue to be, significant, it said. The Committee also agreed that should further stimulus be required, it prefers to undertake large-scale asset purchases of government bonds rather than cut the OCR further. The bank however said New Zealand’s financial system remains sound and major financial institutions are well capitalised and liquid.
Australia will be next. A preditction of another cut in April will see a cash rate of 0.25%. Australia is hurting. The economy is stuffed.
Seems rate cuts cure the virus.
ZeeOneNZ Yep & now there's nothing left in their tool box