VIEW: ANZ note that "trend declines in.........>

RBNZ: VIEW: ANZ note that "trend declines in interest rates over recent decades,

combined with the advent of the current crisis, have raised the very real

possibility that a negative OCR could be seen next year. The RBNZ and financial

market participants are readying themselves for the possibility For households

and most firms, interest rates on savings and borrowing wouldn't be negative if

the OCR were negative - but deposit and borrowing rates would likely fall

further, helping to stimulate the economy. The exchange rate is also likely to

fall. There are risks associated with a negative OCR, and reasons for the RBNZ

to be cautious. At some point, a lower OCR can impair financial market function,

and costs start to outweigh benefits. There are better options that we think the

RBNZ would use before a negative OCR. But it pays to be prepared. If the

economic situation was dire enough, other tools had been exhausted, and the

benefits were deemed to outweigh the costs, the RBNZ could choose to deploy a

negative OCR next year. We don't think it is probable, but the possibility

cannot be ruled out."