Bollard to leave rates unchanged this week

All 12 economists surveyed by www.goodreturns.co.nz expect Bollard to leave the official cash rate (OCR) unchanged at 2.5%.

Driving expectations are continued "green shoots" signs the global economy is stabilising and expectations the domestic economy is coming out of recession, a belief partly fuelled by Bollard himself in a speech on July 14.

"The market may be getting over-excited about rate hikes," says Craig Ebert, an economist at Bank of New Zealand.

Indeed, Jane Turner, an economist at ASB Bank also warns the strong New Zealand dollar is undermining the economic outlook which may force Bollard to cut rates further, a prospect most other economists have largely ruled out.