RBNZ Has Room to Cut If Brexit Unrest Worsens, English Says
- Finance minister says New Zealand well placed to weather storm
- Brexit may buoy NZ dollar by improving relative attractiveness
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New Zealand is better placed than most countries to weather any worsening in post-Brexit global turmoil due to its positive growth outlook and ability to cut interest rates, Finance Minister Bill English said.
“If there’s a significantly negative result, we’re in a very small group of countries -- the others being Iceland, South Korea and Australia -- that have got a combination of reasonable government finances, a reasonable growth path, and room for interest rates to move,” English said in an interview Tuesday in Wellington. “It makes you realize how few tools other countries have.”