According to analysts at ANZ, for the RBNZ, an OCR of -0.25% or even lower is technically possible. Key Quotes “At some point a lower OCR becomes ineffective and beyond that, potentially outright contractionary. Where this point might lie is highly uncertain.” “There is a risk that the mortgage credit channel becomes ineffective if the OCR goes below +0.50%. An OCR below -0.25% is unlikely to be passed through to corporate borrowers, given ‘zero floors’ in contracts. But the NZD channel is likely to still be effective down to even lower levels of the OCR.” “Overall, we are not at all certain that the impact of a negative OCR across all channels would be net stimulatory.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/JPY confronts 21-DMA amid trade-led risk-on, German factory orders awaited FX Street 4 years According to analysts at ANZ, for the RBNZ, an OCR of -0.25% or even lower is technically possible. Key Quotes "At some point a lower OCR becomes ineffective and beyond that, potentially outright contractionary. Where this point might lie is highly uncertain." "There is a risk that the mortgage credit channel becomes ineffective if the OCR goes below +0.50%. An OCR below -0.25% is unlikely to be passed through to corporate borrowers, given 'zero floors' in contracts. But the NZD channel is likely to still be effective down to even lower levels of the OCR." "Overall, we are not at… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
