The Interest rate cuts will now be the “gold standard” for the central bank in case the economy requires more monetary stimulussaid Tuesday the lieutenant governor of the Reserve Bank of New Zealand (RBNZ), Christian Hawkesby, in an interview with MNI.
“There have been no major changes in the RBNZ outlook, and the economy continues to require monetary stimulus to meet inflation and employment targets,” the central bank official added.
Hawkesby indicated that greater damage could be done to the bond market if the buy program is too large relative to the size of the market. He highlighted the role of the program to keep long-term interest rates at levels lower than those they would have in the absence of the program.
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