VIEW: ING notes that "even if there were a.....>

RBNZ: VIEW: ING notes that "even if there were a stronger argument for easing

policy further, which looks questionable, negative rates or direct monetisation

are two policies that come with considerable baggage. As Orr himself remarks,

direct monetisation is a good way to lose market credibility. So yes, you might

"win" on a weaker currency, but you may well "lose" on your government bond

market. As for negative rates, Europe is perhaps the best advertisement for NOT

going down this route. Closer to home, Australia has in fact ruled them out,

noting not only that they may do more harm than good, but also how difficult it

seems to be to undo them once in place. This "event horizon" feature of negative

rates seems as good a reason as any for not doing something which a) seems

patently unnecessary at this time, especially when b) other alternatives remain

available."