22 Jul 2008

Reserve Bank interest rate review awaited

5:56 pm on 22 July 2008

The next review of the Official Cash Rate by the Reserve Bank is due on Thursday.

The market is divided on whether rates will be cut. The OCR is currently 8.25%.

GoldmanSachs JB Were director of investment research Shamubeel Eaqub says New Zealand is sinking in a deep recession and the Reserve Bank should act promptly to ease inflation.

BNZ head of research Stephen Toplis says he expects the Reserve Bank to cut rates from September. If it does not do so, the economy would be in danger of severe recession.

Australian-based TD Securities senior strategist Joshua Williamson expects the Reserve Bank to prepare the market for an interest rate cut in six weeks.