The forecast for negative rates from the RBNZ weighing on the NZD - RBNZ to push back?

Westpac issued a forecast earlier for a negative cash rate in New Zealand

• New Zealand - Westpac expect the RBNZ will cut the cash rate to -0.5% late 2020

The NZD has lost ground since. There is some chatter about that the Reserve Bank of New Zealand will push back against the idea it will implement negative rates, the reasoning being that those DM central banks that have taken the negative rate path (the ECB and BOJ, for example) have found exiting that road difficult. The RBNZ next meet on May 13 (OCR announcement and Monetary Policy Statement media conference) and this will be an opportunity for the Bank to counter the negative rate speculation.

May 13 is a long way off. Also, Governor Orr himself has indicated these are on the radar:

• RBNZ Gov Orr says again does not rule out negative rates

and further:

• RBNZ Gov Orr says he is open minded on direct monetisation of govt debt