The big news at the moment is RBNZ's decision yesterday to keep the OCR at 2.50%, the first time Bollard has reviewed it and left it unchanged since July last year, stating that there is scope for further cuts and continues to expect to hold the OCR at current levels until the latter part of 2010. We think to fix or stay with short term rates makes sense and fits with what the RBNZ is saying.
The only rate change to advise from yesterday was Housing NZ Corp has cut its one-year by 20 basis points to 5.50%.
