Most of New Zealand’s bank economists now expect that the official cash rate will slip below zero in April next year.
The rate is currently at a historic low of 0.25 per cent, which the Reserve Bank has pledged to keep at that level until next March.
ANZ chief economist Sharon Zollner predicted the official cash rate would drop to -0.25 per cent in April.
The lower limit of the cash rate was likely to be -0.75 per cent, she said, which would imply retail borrowing rates could fall another 100 basis points, taking home loans below 2 per cent.
Keep reading: https://www.stuff.co.nz/business/money/300085277/into-the-twilight-zone-we-go-biggest-bank-predicts-negative-interest-rates