In Business Weekly, ASB says this week's focus is on Q2 inflation figures and although inflation is benign now, it will be less so in the future - hence the Reserve Bank's decision to lift the official cash rate (OCR).

"Accordingly we think households and businesses would be prudent to plan on interest rates gradually rising over the next year.

"The recent drop in fixed rates provides a window of opportunity to get some cheap certainty out to two years."

J P Morgan Weekly Prospects says it suspects headline inflation continued to hover around the middle of the Reserve Bank's 1%-3% target range in the June quarter.

"Consumer prices probably grew 1.9%oya compared to 2.0% in the first quarter, marking the fifth straight quarter that headline CPI has remained within the Bank's target."

J P Morgan expects the Reserve Bank will continue to hike the OCR at each of the remaining four meetings this year, with the OCR reaching 3.75% by year end.

BNZ Markets Outlook says while the pace of the recovery is slow, it doesn't necessarily mean the Reserve Bank can be super relaxed about inflation.

"Indeed, we might yet be surprised by how much inflation bubbles to the surface over the next year or two. Of course it's no reason for the Reserve Bank to run tight policy, however the real risk of inflation certainly warns against the Reserve Bank running policy too slack."

BNZ is also expecting a stream of 25 basis point OCR hikes, with the market pricing in an 85% chance of a 25 basis point hike in two weeks time.

Westpac Weekly Commentary says more significant developments will come in the third quarter and beyond as government charges, mostly the GST hike on 1 October, push annual inflation above 5% in the first half of next year.

ANZ Market Focus believes the swing in global sentiment towards pessimism has also seen pessimism emerge in New Zealand with some commentators calling for a pause to rate hikes.

ANZ believes pauses are likely, but not just yet. It says the removal of stimulus remains a key priority for the Reserve Bank and although key barometers like business confidence have softened, they remain positive.

"This isn't a textbook recovery, but then again, long term rates below levels associated with earlier recessions isn't normal either.

"We continue to be surprised by this - whereas the short end has been unwavering in its eagerness to price in hikes despite global jitters, the long end is in no mood to acknowledge the likely long term direction of the economy, and by implication, interest rates."