Economic weather report Oct 23, 2009: When will the RBNZ hike the OCR?

Bernard Hickey delivers an economic weather report in association with ASB looking at when the Reserve Bank of New Zealand might have to raise the Official Cash Rate. Despite RBNZ Governor Alan Bollard saying the central bank expects to leave the OCR at or below its current 2.5% until the latter part of 2010.

Despite this statement from the RBNZ, markets are pricing in a rate hike as early as January. This follows higher than expected inflation figures in the September quarter, improving consumer and business confidence and a rate hike in Australia earlier this month.

The RBNZ has its next rate announcement on Thursday, October 29. Questions have come up regarding whether it will drop the 'low till late 2010' phrase, make it slightly softer, or keep it in place. Economists are now expecting it to drop the phrase.

Category:

News & Politics

Tags:

• Bernard Hickey
• weather report
• RBNZ
• OCR
• interest rates