OCR move next week unlikely: Survey
The latest CPI data, which showed much stronger inflation than expected, had prompted some to question whether the Reserve Bank might move sooner rather than later on the rate.
But economists said Governor Graeme Wheeler was likely to want to wait until March to increase the OCR – if only for the pragmatic reason that he would get a chance to explain his reasoning in more detail at the MPS.
Only ANZ is expecting an increase in January. Chief economist Cameron Bagrie said he expected the rate to be moved up, followed by two more moves at the next two announcements.
Most of the other 16 economists surveyed by mortgagerates.co.nz expected the first increase in the OCR to be a March move of 25 basis points. But Bancorp and NZIER expected a 50 basis point increase.
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