PHOTO: Reserve Bank
An official cash rate announcement is coming from the Reserve Bank on Monday morning, and economists are predicting an emergency cut.
The economy has been shaken by the impact of coronavirus.
Significant restrictions on arrivals, introduced at the weekend, are expected to further affect the tourism sector in particular. Economist Cameron Bagrie has predicted the impact will be “tectonic”.
ASB chief economist Nick Tuffley said the central bank would likely cut the OCR by at least 50 basis points, which would take it to 0.5 per cent.
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