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

RBNZ Gov Orr has said previously he did not rule out negative rates.

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

Even more interestingly:

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

NZD seeing a little selling on this Westpac forecast.

• expect the RBNZ to cut its OCR to -0.5% in November, could be 'telegraphed' as early as August
• WPAC caution the exact timing is uncertain
• huge drop in economic growth requires huge monetary and fiscal stimulus
• in May expects RBNZ to double its QE program to NZD 60bn
• Also in May expects the NZ govmt to announce a further NZD 15bn in stimulus