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.