Not a moment too soon
Highlights of the Westpac Institutional Bank OCR review include:
- The OCR was held at 2.50% as expected, with theRBNZ noting that national economic activity has heldup well since the Christchurch earthquake.
- However, underlying inflation is seen as well containedfor now. The RBNZ will continue to be guided by thetiming of the post-quake reconstruction.
- We expect rate hikes to resume in early 2012,though with a steeper and more prolonged tighteningtrack than the market is currently anticipating.
