(Bloomberg) -- New Zealand's central bank can support the economy for as long as needed through both quantitative easing and other tools, Governor Adrian Orr wrote in a newspaper on Sunday.
“The Reserve Bank can keep monetary support going for as long as necessary through QE and other tools,” Orr wrote in an opinion article in the Sunday Star Times. He said New Zealand is in a “globally enviable fiscal position with significant headroom” and the RBNZ's activities will ensure the country is able to prosper for generations to come.
“We are all experiencing unnerving times and there are some very hard yards ahead,” he wrote. “Some businesses will fail, unemployment will rise, and banks will at times have to judge whether a firm is illiquid or insolvent when making a financing decision.”
However, many firms will make it through this period by working with their bankers and understanding and utilizing the government's support packages.
“Support each other, think beyond just the next six months, and visualise the role you can and will play in the vibrant, refreshed, sustainable, inclusive New Zealand economy,” Orr wrote.
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