Latest / The Kākā by Bernard Hickey
Dawn Chorus: Interest rate warnings after Budget 2023
TL;DR: Bank economists last night firmed up their forecasts for an Official Cash Rate as high as 6.0% before the election after judging Budget 2023 to be more inflationary and generating more borrowing than they expected.
Ratings agency Standard & Poor’s warned overnight the Budget could put Aotearoa’s AA+ sovereign credit rating under pressure, although it stopped well short of issuing any formal warning of a credit rating downgrade.
Budget 2023 was seen adding around one more 25 basis point hike to the OCR, which may (or may not) increase shorter-term fixed mortgage rates by the same…
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