New Zealand central bank expands stimulus, holds rate
Topics: NEW ZEALAND
The Monetary Policy Committee decided to begin a Funding for Lending Programme in December in order to reduce banks' funding costs and lower interest rates.
The committee also decided to continue with the asset purchase programme up to NZ$100 billion and to maintain the official cash rate at 0.25 percent.
Policymakers observed that the banking system is on track to be operationally ready for negative interest rates by year end. The committee agreed that it was prepared to lower the interest to provide additional stimulus if required. ■