InvestNow News – 22nd May – AMP Capital – Negative interest rates in New Zealand?
18th May – Carrick Lucas – Portfolio Manager
There has been increasing speculation that the RBNZ may need to cut its Official Cash Rate (OCR) into negative territory at some point in the future – to provide further support to the economy.
In this new paper, AMP Capital’s Fixed Income team look at the offshore experience of negative rates, their likely efficacy in a New Zealand context, and what a negative cash rate would mean for fixed income returns. While not our base case, we certainly wouldn’t discount a move to a negative cash rate in the future.