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New Zealand weighs negative interest rates as COVID rages overseas

Despite economic bounce, RBNZ tees up cheap cash and eyes 2021 rate cut

The Reserve Bank of New Zealand is following a monetary policy of "least regrets" -- meaning it would prefer to do too much too soon rather than too little too late.   © Reuters

WELLINGTON -- New Zealand's central bank this week is expected to announce plans to unleash a torrent of cheap money into the financial system -- and reiterate the possibility of negative interest rates early next year -- as it braces for further consequences from the COVID-19 pandemic.

But in the nation's streets, there is hardly a face mask to be seen, shops and bars are buzzing with life and containers of New Zealand's agricultural exports continue to be loaded on ships heading for export markets.

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