New Zealand’s Prime Minister Jacinda Ardern has expressed confidence that her country will be able to manage the economic impact of the coronavirus outbreak, although it is too soon to to measure the extent of damage to economic growth. NZ companies with business interests in China have been suffering from the continued shutdown of workplaces as the government tries to contain the spread of the virus.

China is one of New Zealand’s biggest trading partners and businesses in New Zealand are already experiencing cancellations in export orders, especially among meat, dairy and seafood companies. Ardern has sought to reassure markets as her government is already coordinating with tourism and service companies as well as traders in an attempt to contain potential damage.

The RBNZ is widely expected to hold interest rates steady at its upcoming monetary policy meeting later this week. However, if the economic impact of the coronavirus outbreak is felt more severely there is a possibility that the central bank could cut interest rates further in the coming months.