Sitting back and taking a calm attitude

Westpac is sticking to its forecast of a 3.25% OCR bottom.

Chief economist Kelly Eckhold says although other economists are predicting an OCR of possibly 2.5% because the country’s economic recovery is piecemeal and the uncertainties of the US-led global trade war, Westpac would rather take a more considered approach.

The BNZ is predicting the OCR will find a base at 2.75% in August and remain at the low point for an extended period.

ANZ has pencilled in two further OCR cuts in August and October taking the OCR down to a low of 2.5%, while Squirrel Mortgages also sees a possibility of it dropping to the same level, suggesting a revision of the neutral OCR estimate to between 2.50% and 2.75%.