Cash Rate Looks Set to Stay
July 28, 2009 New Zealand Finance
Analysts outlook has predicted that the Reserve Bank will not make any further cuts to the Official Cash Rate (OCR) in its July 30th revision.
The New Zealand OCR as set by the Reserve bank is currently at 2.5%. With an end seemingly in sight for New Zealand and the recession it is now facing, there is no obvious need for further reductions in the OCR, which is already at a record low level.
A survey conducted by Reuters of 16 analysts has resulted in 15 voicing an opinion that there will not be a further cut on the 30th of July. Only one projected a decrease of 25 basis points.
It was voiced that the economy seems to be on the verge of a state of recovery, which entails the Reserve Bank holding some concerns regarding possible side-effects of debt based purchasing as is seen currently in the economy.