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Governor of the Bank of New Zealand does not rule out the possibility of negative interest rates, China announces punitive tariffs on Australian barley

Governor of the Bank of New Zealand does not rule out the possibility of negative interest rates
After last Wednesday (13th) the Bank of New Zealand Governor Orr said after the interest rate meeting, the possibility of walking negative interest rates and the announcement of a doubling of the amount to 60 billion New Zealand dollars cannot be ruled out. To reiterate that if the local economy continues to deteriorate, the bank may not be able to further expand the possibility of quantitative easing. The deputy governor pointed out that the local economy in the second quarter will have a great chance to regress sharply, and the development of the epidemic will also bring great uncertainty to the economic prospects. Therefore, all monetary policy options must be maintained. As for epidemic control, New Zealand's situation is clearly superior to that of European and American countries. At present, New Zealand is reducing its epidemic alert to the second level. That is, shopping malls, theaters and fitness rooms have been reopened.

China announces punitive tariffs on Australian barley
Following the beef, China announced this week that it would impose a punitive tariff of 80.5% on Australian barley for a period of 5 years. It is understood that half of Australia's overall barley exports go to China. China is currently the world's largest importer of barley. Barley is mainly used for wine and animal feed. Before the implementation of the above tariffs, Australia was the largest supplier of Chinese barley. If China does not import barley from Australia, it can turn to Europe, Canada and Argentine for purchase. However, after Australia lost its huge market in China, it was looking for new buyers, and it is believed that prices will also fall to some extent.


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