A Reserve Bank economist has proposed the introduction of a negative official cash rate to push banks into dropping interest rates.
The third round of wage subsidies kicked into gear today, which is expected to help nearly a million workers.
But tough decision-making that reflect the times may see the introduction of a negative official cash rate early next year.
That would mean pushing banks into dropping their interest rates.
"Don't worry, you won't be forced to pay money to the bank to keep your money there," the Reserve Bank's chief economist, Yuong Ha, told 1 NEWS.
"Likewise, the bank won't be paying you to take out a mortgage."
A survey of lower North Island businesses found 61 per cent expect the economy to be worse in 12 months time.
That's partly driven by uncertainty as the country yo-yos between alert levels.
That uncertainty is showing up in the statistics with the number of women employed in tourism down 8.4 per cent in June, that's 11,300 women.
Four thousand Māori women also lost work.
"With women, we didn't see an increase in employment that we often do quarter to quarter as the population increases, but we did see that for men to a small degree," Statistics NZ's Andrew Neal said.
The Government is promising it is taking the tough times for businesses into account when making its decisions.
SHARE ME