PHOTO: Nick Tuffley. Photo credit: The AM Show
One of the country’s big banks is tipping interest rates to go negative next year, as the international economic impact of the COVID-19 holds back New Zealand’s recovery.
While ASB doesn’t expect the proper economic recovery to start until 2023, in the meantime New Zealand’s doing better than initially feared thanks to the successful strategies used to limit the local spread of the virus, which has killed more than 875,000 people worldwide.
“Until COVID-19 is brought under control, economic activity will face periods of disruption,” said ASB chief economist Nick Tuffley.
“An effective vaccine to combat the outbreak could still be years away and until then, containment looks to be the best solution. The art will be refining and adapting restrictions and business operations to minimise disruptions.”
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