RBNZ Prepared to Print Money in a Crisis, McDermott Says

New Zealand’s central bank said it’s prepared to engage in large-scale asset purchases if it needs to in a major financial crisis, meaning it would effectively print money to keep the economy afloat.

The Reserve Bank would turn to five policy tools to battle a massive economic shock including so-called quantitative easing, Assistant Governor John McDermott said in an interview Wednesday. He spoke after the bank published a research paper setting out the unconventional monetary policy responses it could employ should a major shock threaten the economy.