VIEW: BNZ note that "while there is little.....>

RBNZ: VIEW: BNZ note that "while there is little debate over the broader path of

the New Zealand economy, there is a widening of views on the RBNZ's response. A

number of commentators are beginning to take the view that New Zealand's cash

rate will go sub-zero and, maybe, quite soon... We certainly do not rule out

negative rates but we still think this would be unlikely until Q1 2021 at the

very earliest... Moreover, we also question the efficacy of negative rates

anyway... We would never say never, particularly in this environment, but,

equally, we are still not supporters of a negative cash rate at this stage...

Furthermore, we see little chance of the RBNZ messing around with anything less

than 25 basis points were it to move the OCR. This being so, and given that the

trading banks are some way from getting the necessary systems in place, current

market pricing of lower interest rates in the next few months seems somewhat

incongruous."