Economists: Expect another increase
Mortgagerates.co.nz’s latest survey of economists found they all expect the Reserve Bank to move the rate by 25 basis points again, which would take it to 3%.
But they are split in their views on how many more increases there could be this year.
ASB and HSBC expect another two – in July and December. ASB predicts a peak of 4.5% at the end of 2015.
ASB economist Chris Tennent-Brown said: “We don't expect the RBNZ will give a fresh signal on the extent of the tightening cycle. But there is a risk the RBNZ sounds equivocal about the likelihood of a third consecutive OCR increase in June. Key signs to watch for are any discomfort over the extent to which dairy prices have fallen and to the further lift in the NZD since RBNZ’s first OCR increase.”
He said: “We expect the RBNZ will complete three OCR increases by the July OCR window, and ahead of the April OCR meeting still favour July over June as the timing of the third of those increases.”
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