PHOTO: MASANORI UDAGAWA/GETTY IMAGES The sporting sector will be affected, along with tourism and hospitality, BNZ says
A Reserve Bank decision to cut the official cash rate from 1 per cent to 0.25 per cent will not make any difference to economic outcomes whatsoever, BNZ head of research Stephen Toplis says.
He said the Government’s decision on Saturday to require all new arrivals to self-isolate for two weeks had cemented a “deep recession” in New Zealand. The impact on tourism and airports would take 6 per cent off gross domestic product, he said. That would be offset by no New Zealanders taking foreign holidays, which would mean a net fall of 2 per cent in GDP from the two sectors.
On top of that, there would be an impact on sports, entertainment, broadcasters, film sector and investment markets.
The BNZ had already flagged that the coronavirus outbreak was likely to push the New Zealand economy into recession.
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