The Reserve Bank of New Zealand has slashed the country's Official Cash Rate to just 0.25 per cent, down from 1.0 per cent.
The bank cut the official cash rate to 0.25%.
Air New Zealand was in a trading halt after it announced major cuts to worldwide services, plans to reduce local flights by as much as a third, and lay off staff.
He said the real challenge would be using other tools rather than just the interest rate tool.
He warned the first nine months of 2020 could see New Zealand's economy endure "one of the sharpest drops in living memory" and there was little the central bank could do about it.
But he said the move was also meant to show that the RBNZ was not at this point contemplating negative interest rates, even as the policy options for central banks dwindle globally.
The Pound-to-New Zealand Dollar exchange rate is quoted at 2.0436, down 0.26% today but up 0.92% since the week's opening on Sunday.
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However, the Spanish government stated that the Prime Minister and his wife remain in the Prime Minister's residence in Madrid . In the Middle East, Iran's death toll reached 611, with almost 13,000 infections, including senior government officials.
"New Zealand is in a strong position to respond to the economic impacts of COVID-19".
Meanwhile, addressing to a growing demand of further monetary measures and stimulus amid a global-scale health emergency, RBNZ said in a statement following the rate-cut earlier on Monday (March 16th), "The negative economic implications of the COVID-19 virus continue to rise, warranting further monetary stimulus".
"New Zealand's financial system remains sound and our major financial institutions are well capitalised and liquid", he said.
There are now eight confirmed cases of COVID-19 in New Zealand.
The Reserve Bank noted that global trade, travel and business and consumer spending have fallen significantly, and movement of people across borders has also slowed.
The Government is preparing for its biggest day of the crisis so far, with plans to unveil a multi-billion-dollar rescue plan to save jobs and businesses.
This week's economic news from New Zealand should give a clearer picture of the coronavirus' impact on their respective economies.
It also expects the OCR to be cut to zero shortly, as the Reserve Bank tests the limits of monetary policy support.