With COVID-19 causing concerns, the RBNZ announced to cut the official cash rate to 0.25% on 16 March. Given this the OCR is at a low level now- leading to open consideration of other potential “unconventional tools” such as Large Scale Asset Purchases (LSAP) or more commonly termed as Quantitative Easing. With this now taking place around the world I wanted to discuss these tools.
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Central banks and large scale asset purchases…
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With COVID-19 causing concerns, the RBNZ announced to cut the official cash rate to 0.25% on 16 March. Given this the OCR is at a low level now- leading to open consideration of other potential “unconventional tools” such as Large Scale Asset Purchases (LSAP) or more commonly termed as Quantitative Easing. With this now taking place around the world I wanted to discuss these tools.