Finance Minister Grant Robertson says the Reserve Bank’s independent decisions announced this morning are a welcome support for the economy, with reports already that banks are looking to pass the OCR cut on to customers.
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.
"The Government, through the Treasury, and the Reserve Bank have been working closely together to co-ordinate our actions as we respond to the economic impacts of COVID-19," Grant says.
"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.
"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."
