Has NZ reached the lower limits of monetary policy?

By Jenny Ruth | Mon, 18 Nov 2019


For all the talk about the Reserve Bank having to resort to "unconventional" monetary policy once its official cash rate gets so low as to be ineffective, there are signs we may have already reached that point.Government-owned Kiwibank has just increased its one-year term deposit rate by 5 basis points to 2.75 percent for deposits of $10,000 and more.That's 10 basis points higher than ANZ Bank's 2.65 percent one-year rate for $10,000 or more, above Westpac's 2.6 percent rate for $5,000 or more, and above BNZ's 2.6 percent for $2,000 or more.Kiw...