RBNZ actions have been effective in lowering rates, Governor Orr says

WELLINGTON, Sept 2 (Reuters) – The Reserve bank of New Zealand’s (RBNZ) actions have been effective in broadly lowering interest rates, governor Adrian Orr said on Wednesday, adding that policymakers are also preparing extra tools to use if needed.

“We have been effective in lowering interest rates across the board, and ensuring there is plentiful liquidity in the financial system,” Orr said in a speech delivered to the Victoria University School of Government and Policy Studies.

He also reiterated that the RBNZ was actively preparing additional monetary policy tools to use if needed, which included negative wholesale interest rates, further quantitative easing, direct lending to banks and ongoing forward guidance. (Reporting by Praveen Menon Editing by Shri Navaratnam)

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