Markets price in negative interest rates
While the OCR was left unchanged the Reserve Bank's Monetary Policy Committee last week noted "a negative official cash rate will become an option in future".
The central bank said financial institutions were "not yet operationally ready", but markets have moved since the announcement.
The first negative OCR is priced in for April 2021, according to Kiwibank trader Ross Weston.
"The RBNZ gave themselves optionality last week, with the markets' focus on the OCR track which was cut short, seemingly leaving a cut an option only after March 2021," Weston said.
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