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MR - Experts Views

Reserve Bank unlikely to follow RBA hike

Thursday 8th of October 2009

In the latest Weekly Overview, Alexander says the RBNZ have made it clear they will keep floating rate borrowing costs as low as possible, for as long as possible.

"Though we see little chance they will be able to keep the 2.5% Official Cash Rate in place until the latter part of 2010' as they have repeatedly stated", he says.

Alexander expects the RBNZ to move in July next year at the latest.

"But the quicker the Australians move the sooner a rate rise here is likely," he adds.

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