Economists react to rate hold decision
ASB's Nick Tuffley believes rates will begin to rise the next time the central bank makes an interest rate decision. He expects increases in October, November and February, each of 25 basis points.
However, he said the call was dependent on the severity of the delta outbreak.
"Assuming the outbreak is stamped out relatively soon, we expect the RBNZ to start lifting the OCR from October. However, this view is highly conditional on a short-lived lockdown. Markets will be very sensitive to the run of Covid headlines, so brace for volatility for a period."
Tuffley doesn't believe a short lockdown will have more than a "very modest lasting economic impact".
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