ANZ predicts fewer OCR cuts
The central bank rate is currently at 0.25% following emergency cuts in the wake of the Covid-19 pandemic. With the economy limping along, economists are divided on whether the Reserve Bank will slash the OCR to zero, or into negative territory.
ANZ, until now, had predicted negative rates next year, but the bank's team of economists, led by Sharon Zollner, have changed their minds.
They predict the OCR will be cut in May, but say the central bank will avoid negative rates.
ANZ's team believe monetary policy measures, such as slashing the OCR, a Funding for Lending Programme, and quantitative easing, have done their job in stimulating the economy.
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