GDP lower than expected

29 September 2010

Last week's GDP figures surprised everyone and now economists are all on the same page with the next Official Cash Rate (OCR) increase not expected until March 2011.

GDP figures as seen in the graph showed the economy grew just 0.2% in the June quarter. Market expectations were centred around 0.8% and the Reserve Bank was expecting 0.9%.

ASB says if the Reserve Bank waits till March next year then it will have another six months to allow the economy to strengthen and better assess the earthquake disruption.

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GDP lower than expected

Keen for the best rate and some cash too?

Ryan

Jo

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