- The Reserve Bank has markets guessing about whether interest rates will hit a new all time low this week.
On Thursday Governor Graeme Wheeler will announce the latest review of the official cash rate (OCR), as he delivers the Reserve Bank’s quarterly update of New Zealand’s economic forecasts.
Although no customers borrow at the rate of the OCR, which is currently 2.25 per cent, it has a direct influence over the interest rates on mortgages and savings.
The announcement is shaping up as the most uncertain since the Canterbury earthquakes, with the bank’s recent behaviour leaving the market split on which way Wheeler will go.
* Senior Reserve Bank officials accuse former colleague of having a ‘victim filter’
* Reserve Bank of NZ conducting probe into alleged leak of OCR decision on March 10
* Not in NZ’s ‘economic interests’ to release interest rate votes – Reserve Bank
* NZ Reserve Bank expected to hold rates this week, but future cuts ‘inevitable’
* Banks may seek to recover lost margins by passing on little of OCR cut
* Reserve Bank drops OCR to 2.25 per cent but banks may keep some for themselves