Westpac are still tipping the Reserve Bank of New Zealand will go to a negative cash rate in 2021 but "concede that we're less certain on that than we were a few weeks ago ".
WPAC chief NZ economist Dominick Stephens
- recession might not be quite as bad as previously expected
- expects further job losses
On the NZD:
- exchange rate is shooting up
- is now much higher than the Reserve Bank forecast
- will tend to suppress inflation, and that's in favour of our negative OCR call
