OCR expectations knocked back
BNZ Weekly Overview economist Tony Alexander and JP Morgan Weekly Prospects economist Helen Kevans are both now forecasting that the Reserve Bank will now not raise the OCR again till December.
Alexander says this means steady floating rates until then and little reason for jumping into a fixed rate unless one expects the fixed rates to suddenly rise.
Kevans acknowledges that the next rate move may even be delayed until next year should the global picture deteriorate further and the domestic data suggest that the recovery underway has come to a standstill.
ANZ, ASB and the markets also now expect a pause in September.
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