OCR Announcement

We have no particular insight on this morning’s decision other than the insight that economic conditions continue to deteriorate.  But I can observe that if Bollard doesn’t go the full 150% then he will have undershot many expectations out there. 

The key after ths announcement is to ensure that the lower interest rates are passed on quickly to business and household borrowers.  To date the OCR falls have not had that much impact on businesses.  Government should be making clear its expectations on this as a quid pro quo for the guarantees, particularly that on wholesale market borrowings.

Bollard is speaking to our members next week.


Tags: ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: