New Zealand Eyes Stable Markets After Quake

New Zealand financial authorities said they would work to ensure markets in the country remain stable in the wake of a devastating earthquake.

Central Bank Governor Alan Bollard said on Wednesday it was monitoring financial markets after the country’s second biggest city was hit by a quake that left at least 75 dead.

He said the bank was working with financial institutions to ensure the availability of cash in Christchurch.

In trading on Wednesday, the New Zealand dollar remained weak on expectations the Reserve Bank would not raise interest rates this year, and possibly would ease monetary policy in the wake of the destructive temblor.

The Kiwi currency lost 2 percent on Tuesday and remained on the back foot.

Separately, Moody’s Investor Service said there was no immediate impact on the country’s debt rating from the earthquake, although it would likely result in more issuance.

New Zealand Prime Minister John Key declared a national state of emergency on Wednesday to cope with the effects of the earthquake, which has left some 300 people unaccounted for.

Foto: NTDTV