Coronavirus will lead to OCR cut this month: ANZ

ANZ's team of economists, led by Sharon Zollner, say the "rapidly" escalating outbreak, which hit NZ last week, has led to "clear risks of a larger slowdown or even a recession".

The bank now expects a 50 basis point cut in March, and a further 25 basis points in May, taking the OCR to just 0.25%.

A move would likely see mortgage rates continue to plummet below record low levels.

The economists believe "a marked global slowdown is guaranteed" from the coronavirus, due to both demand and supply disruptions.