RBNZ chief says negative interest rates "within the realms of possibility"
WELLINGTON, Aug 7 (Reuters) - New Zealand's central bank
governor said on Wednesday there was a possibility of using
negative interest rates to stimulate the economy, after the bank
had earlier slashed the official cash rate to a record low.
"It is easily within the realms of possibility that we might
have to do negative interest rates," Governor Adrian Orr told a
news conference after announcing the bank was slashing rates to
a record low of 1.0%.
However, he added the hefty 50 basis-point cut, which caught
markets off-guard, reduced the possibility of having to use
negative interest rates as it would stimulate the economy.
(Reporting by Charlotte Greenfield
Editing by Shri Navaratnam)
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