There's concern about what happens if New Zealand heads into negative interest rates
There's concern about what happens if New Zealand heads into negative interest rates
6 August 2019
The Reserve Bank is expected to cut the OCR to a new record low of 1.25 percent tomorrow.
New Zealand Initiative executive director Oliver Hartwich says other economies in Europe are already moving into negative interest rate territory.
He says there's weakening business confidence, but New Zealand isn't into recession territory yet.
Hartwich says when that recession eventually comes, the country will have to cut the OCR again, and there won't be much left to cut.
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