BBG runs an interview with RBNZ Governor.......>

RBNZ: BBG runs an interview with RBNZ Governor Orr, as he notes that the Bank's

strategy is to keep the yield curve "low and flat."

- On the OCR he states that the Bank does not want to move to negative rates at

this point, but it could make such a move "much later." A reminder that the Bank

noted that it will leave its OCR at 0.25% for at least 12 months back in March,

after it implemented a 75bp cut. Last week's decision saw the Bank note that the

"the Committee reaffirmed its forward guidance that the OCR will remain at 0.25%

until early 2021."

- Last week also saw RBNZ Deputy Governor Bascand point to a desire for banks to

be operationally prepared for negative rates by year end.

- We also saw Orr suggest that competition in the banking sector will lead to

the lower OCR being passed through on the retail side. See our previously

flagged interview with Asst. Gov. Hawkesby for more colour on this.