Today’s statements that the next OCR move could be down, and that NZ will probably tip into deflation this year, were not expected.
"We expect to keep the OCR on hold for some time"
The long awaited 'correction' in the NZ dollar might be here. Were you careful enough about what you wished for?
"Some increase" in interest rates still likely - but some way off.
Similar rises in the US currency triggered debt crises in Latin America in the late 1980s and in East Asia in the late 1990s.
Interest rates for small to medium sized firms are now back to what they were in mid-2005, hence the calls for a cut.
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