With the New Zealand economy showing some seriousupward momentum, interest rate markets are now fullypricing in a 25 basis point OCR increase in March next year – and are also giving a 40% chance that the first hike comesas soon as January. We don’t consider a January hike astrong possibility. We’ve laid out our thoughts on the timingof the first OCR hike before – particularly when we shiftedour forecast from March to April – and the basic pointshaven’t changed since then.
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Westpac