Economics
Orr Readies New RBNZ Stimulus Tool as Step Toward Negative Rates
- Policy makers expected to announce cheap bank loans on Nov. 11
- ‘It’s an important part of making a negative OCR effective’
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New Zealand central bank governor Adrian Orr is set to unveil a new monetary stimulus tool aimed at driving borrowing costs to fresh historic lows to spur economic growth.
Orr is expected to lay out plans on Nov. 11 to provide cheap loans to banks, giving them scope to further reduce lending rates. The Funding for Lending Program, which could begin within weeks, is seen as a key step toward the Reserve Bank cutting the official cash rate into negative territory next year.