Economists and markets say interest rates up this week
For once, economists and the wholesale interest rate markets are in complete agreement that Bollard will raise his official cash rate (OCR) from 2.75% to 3% on Thursday.
The central bank may have revised its growth forecasts down slightly, given the recent decline in dairy prices and rapid slowing in net migration, says Jane Turner, an economist at ASB Bank.
Slowing net migration adds downside risks to the housing market, Turner says.
The Reserve Bank's forecasts for 2011 residential construction are stronger than other economists but the central bank is still likely to be comfortable with recent developments, she says.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
