Mike Jones: BNZ Chief Economist on the expectation the Reserve Bank will hike the Official Cash Rate from 2.5%
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Mike Jones: BNZ Chief Economist on the expectation the Reserve Bank will hike the Official Cash Rate from 2.5%
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The Reserve Bank looks set to turn the screws on interest rates again today.
Most economists expect the OCR to rise from 2.5% when the decision is announced at 2pm.
One or two further hikes are forecast before Christmas.
BNZ Chief Economist Mike Jones told Mike Hosking he expects the Monetary Policy Committee to reach a consensus on the increase, but it’s possible not everyone will agree.
He says the Reserve Bank hinted strongly in July that we would see additional rate increases, and there's been nothing in the numbers since to change that.
However, Jones says a pause will eventually be needed to see how the economy's handling the higher rates.
He says that time isn't now, but probably when the rate reaches 3%.
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