New Zealand’s money markets price out prospects of negative rates

With the Reserve Bank of New Zealand offering an upbeat view of the economy, the country’s money markets are pricing out prospects of the Reserve Bank of New Zealand pushing rates to sub-zero levels in 2021. 

The central bank’s governor Adrian Orr was out on the wires soon before press time, stating that the economy has been more resilient than previously expected and it is too early to tell whether the negative interest rate policy would be implemented. 

The central bank kept the benchmark interest rate unchanged at 0.25% early Wednesday but boosted the large scale asset purchase program by NZ$ 100 billion. 

NZD/USD is now trading at 20-month highs above 0.6882.