OCR increases but more moderate pace to come
"While the outlook for economic growth has softened somewhat, it is still appropriate to continue to reduce the extraordinary level of support implemented during the 2008/09 recession," Bollard said in Wellington today.
"The pace and extent of further OCR increases is likely to be more moderate than was projected in the June statement."
While floating interest rates are set to rise after the increase, they won't do so as hard or as fast as previously thought, due to the more dovish angle Bollard took on further increases than was expected.
Recent data and confidence measures point to an economy that has slowed to a more tepid pace of growth, easing pressure on the central bank to embark on an aggressive tightening.
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