Up until last
Tuesday, 17 August, the Reserve Bank of New
Zealand was widely tipped to hike the official cash rate (OCR) from the
current 0.25%. Some
commentators had priced an increase of 50 basis points to 0.75%. Indeed,
commercial banks were seemingly ready to hike their own rates, with ANZ going
early (and dropping them back again this week).
News of the
Delta variant of Covid-19 being in our community and the nation subsequently
going into lockdown has resulted in the Reserve Bank keeping its powder dry and
leaving the OCR unchanged.
The Reserve Bank has now indicated a hike of 50
basis points is being considered for October, all but confirming it is going to
take a horrible turn of events to put off a rise this year.