Whitepapers & e-books

Negative interest rates in New Zealand?

By Carrick Lucas
BCom, CFA Senior Portfolio Manager Wellington, New Zealand

There has been increasing speculation that the RBNZ may need to cut its Official Cash Rate (OCR) into negative territory at some point in the future - to provide further support to the economy. In this paper AMP Capital’s Fixed Income team look at the offshore experience of negative rates, their likely efficacy in a New Zealand context, and what a negative cash rate would mean for fixed income returns. While not our base case, we certainly wouldn’t discount a move to a negative cash rate in the future.

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Important notes

This article has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.

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