Cameron Bagrie: Reserve Bank tool could reduce interest rates further

Publish Date
Wed, 11 Nov 2020, 6:59PM
Reserve Bank Governor Adrian Orr. Photo / NZ Herald.
Reserve Bank Governor Adrian Orr. Photo / NZ Herald.

Cameron Bagrie: Reserve Bank tool could reduce interest rates further

Publish Date
Wed, 11 Nov 2020, 6:59PM

The Reserve Bank will implement a Funding for Lending Programme early next month - to reduce banks' funding costs and lower interest rates.

It's also announced the Official Cash Rate remains at 0.25 [point two five] percent.

Independent economist Cameron Bagrie told Simon Barnett and Phil Gifford the programme will lower the Reserve Bank's input costs.

He says if banks are getting cheap funding, they should be able to take borrowing rates down.

Cameron Bagrie says borrowers win - because the Reserve Bank is trying to get as much money into the system, to make sure monetary policy is going to get the economy back on track.

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