Reserve Bank Governor Adrian Orr

PHOTO: ROBERT KITCHIN/STUFF Reserve Bank Governor Adrian Orr said there was no magical fix

New Zealanders losing their jobs, and their houses, pose the biggest challenges for banks during the coronavirus crisis, says Reserve Bank Governor Adrian Orr.

Orr told the Epidemic Response Committee on Thursday that the country’s banks and financial institutions were strong and in a position to be part of the solution

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However, Kiwis becoming unemployed and unable to pay their mortgages posed a challenge.

In a worst-case scenario, Treasury modelling released on Tuesday showed unemployment could reach 26 per cent. But Government support, and intervention in the economy, could reduce that to 9.5 per cent. 

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