Thu. Dec 19th, 2024

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Finance Minister Grant Robertson says the Reserve Bank’s independent decisions announced this week are a welcome support for the economy, with reports already that banks are looking to pass the OCR cut on to customers. Notably, the Reserve Bank, said in a release, “The Official Cash Rate (OCR) is 0.25 percent, reduced from 1.0 percent, and will remain at this level for at least the next 12 months. The negative economic implications of the COVID-19 virus continue to rise warranting further monetary stimulus. The negative impact on the New Zealand economy is, and will continue to be, significant. Demand for New Zealand’s goods and services will be constrained, as will domestic production. Spending and investment will be subdued for an extended period while the responses to the COVID-19 virus evolve. Several factors will continue to assist and support economic activity in New Zealand. New Zealand’s financial system remains sound and our major financial institutions are well capitalised and liquid. The Reserve Bank is also ensuring that the banking system continues to function normally.”

Editor The Indian News

By Editor The Indian News

Yugal Parashar, Editor, The Indian News

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