Reserve Bank Will Leave OCR Alone
Our expectations are for the Reserve Bank to hold the Official Cash Rate steady tomorrow, even though the markets will be searching for clues as to how long the cash rate will stay at current levels.
Economists and analysts from the major banks all believe the OCR will be held at its current level of 2.5 percent.
Chief economist for Deutsche Bank Darren Gibbs suggests there is little scope for surprise in the Reserve Bank’s monetary policy statement and an official cash rate review.
The focus for markets will however be on the Reserve Bank’s updated economic projections, which were last published in September, and in particular, the central bank’s implied stance on monetary policy for 2010.