New Zealand Central Bank Seen Poised for Emergency Rate Cut

Matthew Brockett, Bloomberg News

The Reserve Bank of New Zealand (RBNZ) building stands in Wellington, New Zealand, on Saturday, June 22, 2019. The out-of-favor kiwi dollar has tumbled about 3% this quarter as the Reserve Bank of New Zealand turned dovish and cut interest rates, the first central bank in the developed world to do so. Economic growth held at a five-year low in the three-months through March, leaving the door open for further easing. Photographer: Birgit Krippner/Bloomberg , Bloomberg

(Bloomberg) -- New Zealand’s central bank appears poised to deliver an emergency rate cut Monday morning after the government announced strict new border controls over the weekend to prevent the spread of coronavirus.

The Reserve Bank will make an unscheduled announcement at 8 a.m. in Wellington, it said in a statement. Governor Adrian Orr will hold a press conference at 11 a.m. The RBNZ’s official cash rate is currently at a record-low 1%.

“We presume the RBNZ will cut the OCR at this point. We anticipate a move of at least 50 basis points,” said Nick Tuffley, chief economist at ASB Bank. “We also expect the OCR will get cut to zero shortly as the RBNZ tests the limits of monetary policy support.”

To contact the reporter on this story: Matthew Brockett in Wellington at mbrockett1@bloomberg.net

To contact the editor responsible for this story: Matthew Brockett at mbrockett1@bloomberg.net

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New Zealand Central Bank Seen Poised for Emergency Rate Cut