While the New Zealand economy started the year at a rollingboil, it now appears to have slowed to a steady simmer.Even so, we think that markets are overestimating whatrecent developments means for interest rates. On balance,conditions are not all that different to what the Reserve Bankexpected three months ago – and this month’s MonetaryPolicy Statement could give markets a pointed reminder ofthat fact. That means the recent opportunities for borrowersto lock in lower fixed-term rates could be short-lived.
Read the full report: Market Research
Westpac