24 Jun 2020

Reserve bank expected to hold interest rates

From Morning Report, 8:20 am on 24 June 2020

The Reserve Bank is expected to hold interest rates steady a little longer to give banks plenty of time to adjust to negative interest rates.

The central bank's waded in with a major rate cut, bond buying, and other measures to support the banking system and economy from the impact of the Covid-19 pandemic.

The RBNZ has committed to keeping the cash rate at 0.25 percent until March next year, despite the occasional call to bite the bullet and move below zero.

Nicholas Pointon reports.