Westpac predicts OCR will be put on hold

The bank's team of economists, led by Dominick Stephens, believe the OCR will be held at 1% due to an improved outlook on inflation, employment and the housing market.

In a new report the bank says: "The balance of recent domestic data does not justify a cut, global sentiment has improved, and overseas central banks have indicated they will pause."

The bank previously expected a "rash of downside surprises" to prompt a November cut. 

Westpac believes the central bank will imply a 50/50 chance of a future rate cut as it makes its monetary policy statement next week.