Kelly Eckhold: Westpac Chief Economist on the Reserve Bank's decision to build up its foreign currency assets
Early Edition with Ryan Bridge · Newstalk ZB
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Show Notes
Economists are praising the Reserve Bank's decision to build up its foreign currency assets.
It's bought and borrowed to drive its total foreign currency holdings up by a third, to a total of almost $18 billion.
Westpac Chief Economist, Kelly Eckhold, says it will give a signal the central bank is willing to step in if there's a shock to the economy.
He told Tim Dower that the move should reassure people.
Eckhold says it would be worrying if the bank didn't have the capacity.
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