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The OCR ain't going anywhere

Thursday, December 6th 2012, 1:50PM

The new Reserve Bank governor, Graeme Wheeler, predicts that the official cash rate won't by going anywhere until 2014.

This is clear from the 90-day bank bill forecast graph in the December Monetary Policy Statement. It shows clearly how over the past year forecast increases kept getting pushed down each quarter.

A year ago the bank was predicting the 90-day bill rate would be up at 4.00% by March 2014. That forecast was wound back to 3.3% in March, 3.2% three months later and is now down at 2.8%.

The good news for borrowers is that, asssuming things pan out as forecast, then home loan rates aren't likely to be going up any time soon either.

Rates flatlining

Comments from our readers

On 15 May 2013 at 8:38 pm William Connell said:

And now 17 months later what do you predict? As my mortgage is about to end it's current fixed term, I'm intending to go fixed 5 years as I can't see the OCR rates getting this low again for some time.

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