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OCR Predictions Lower

December 1, 2008 New Zealand Finance  No comments

Closer to the December Official Cash Rate (OCR) decision a progressively larger number of analysts are predicting a dramatic drop.

While argument may arise around exactly how much Reserve Bank Governor Alan Bollard will cut the OCR, no analysts are willing to vouch for any figure lower than 100 basis points, bringing the OCR to at least 5.5%.

Predictions for the December OCR cut range realistically between 100 to 200 basis points, with supporters on either side of the spectrum.

The biggest supporter of a 100 point cut amongst chief New Zealand analysts is Westpac Trust. In a statement released by Westpac Trust, they place their estimate on the lowering commodity prices of today’s market, the falling price of oil, lowered mortgage rates and the oncoming National Tax cuts...

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