Get ready for two more rises

Governor Alan Bollard raised the official cash rate from 6 per cent to 6.25 per cent - as expected - and warned that further tightening was likely.

"The words promise one more in October, but the numbers are projecting two more," said Westpac chief economist Brendan O'Donovan.

The Reserve Bank has raised its interest rate projections, and now has 90-day rates holding at around 6.75 per cent through next year and 2006.

It predicts the exchange rate will stay high for another six months or so before it declines, and its short-term growth expectations are higher than they were three months ago.

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