Kiwi cut raises the prospect of negative interest rates

Original article by Adam Creighton
The Australian – Page: 4 : 8-Aug-19

The Australian dollar reached a 10-year low of $US0.6680 in local trading on 7 August, after the Reserve Bank of New Zealand reduced official interest rates by 50 basis points to 1 per cent. Central bank governor Adrian Orr has not ruled out the prospect of negative interest rates or measures such as quantitative easing. The RBNZ’s move is likely to strengthen the case for further monetary policy easing in Australia before the end of 2019.

CORPORATES
RESERVE BANK OF NEW ZEALAND, RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AUSTRALIA LIMITED, HSBC AUSTRALIA HOLDINGS PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIA. DEPT OF THE TREASURY

Why New Zealand moved and the RBA held

Original article by David Rogers
The Australian – Page: 27 : 9-May-19

The Reserve Bank of New Zealand’s decision to reduce the cash rate for the first time since 2016 had been widely expected. The central bank attributed its move to the outlook for global economic outlook and domestic factors such as the outlook for employment and inflation. Meanwhile, market pricing suggests that the Reserve Bank of Australia will leave the cash rate on hold until at least September, while a second rate cut could be delayed until May 2020.

CORPORATES
RESERVE BANK OF NEW ZEALAND, RESERVE BANK OF AUSTRALIA