NZ's neutral interest rate now below 4 percent says RBNZ

Tue, 25 Jul 2017

By Rebecca Howard July 26 (BusinessDesk) - New Zealand's neutral interest rate has fallen below 4 percent and a lower New Zealand dollar would help rebalance growth and lower the nation's net foreign liabilities, said Reserve Bank assistant governor John McDermott in a speech. The level of the neutral interest rate is one of three key economic trends the Reserve Bank regards as particularly important, along with potential output growth and the equilibrium real exchange rate, said McDermott. "These trends are the anchors around which...

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