Covid-19: Economist on official cash rate cut

Audio, Radio New Zealand

The Reserve Bank has cut its benchmark interest rate, to support the economy against the impact of the Covid-19 virus. The central bank cut its official cash rate to 0.25 percent from one percent. Governor Adrian Orr says the cut is necessary to support businesses and employment. The last time the Reserve Bank made such a big cut was in March 2011 after the Canterbury earthquake. Last week, the bank outlined a range of unconventional monetary policy tools such as negative interest rates, special loans to banks, and buying bonds to put money into the economy. Cameron Bagrie is an independent economist. He speaks to Susie Ferguson.