ANZ forecast an RBNZ negative cash rate from April 2021

ANZ Reserve Bank of New Zealand outlook:

• RBNZ has made it clear that a negative OCR is next
• once QE has largely run its course
• We are forecasting a 50bp cut to -0.25% in April, strongly foreshadowed (if not promised) at the February MPS
• A bank funding for lending programme will accompany it.

ASB the same:

• ASB are now looking for a negative cash rate in New Zealand with rate cuts taking the OCR to -0.5% most likely by April next year.