Expert views ends this week with another good piece from BNZ chief economist Tony Alexander. In his Weekly Overview Alexander explains why the argument from politicians and the Reserve Bank over funding of home loans are wrong.
He argues that the OCR is irrelevant to where banks source their home loan funding. The argument makes sense but is curious as the banks have always moved their home loan rates in tandem with OCR movements.
That bit he doesn't explain.
The other piece of information Alexander imparts is that he predicts the next OCR adjustment will be upwards. The easing cycle is over. The good news is that this increase is sometime next year, he predicts, but it will be earlier than the RBNZ currently suggests.
As usual he gives his views on rates and which ones to go for. Here he is in line with other economists - fix short.
