Tony Alexander said in his Weekly Overview newsletter this week that this is the most uncertain interest rate forecasting environment that we have ever seen. To help illustrate that point we have pulled this graph out of one of the three papers economist Rodney Dickens has produced on interest rate setting. The coloured lines show how the Reserve Bank has regularly changed its forecast for 90 bank bills over a number of quarters. It's a useful graph as the 90 day bills are a good proxy for the OCR.
