OCR predictions

Hi everyone, well here's some thoughts from the Mole.....David can't be seen to be making predections on rates and that sort of thing so it's down to me to put my thingies on the line and give it a shot!

The Mole reckons that Mr Bollard will drop the OCR by 75 points and suggest in his brief that that could be the lot. But the Mole reckons that we'll see one more drop after that of around 25 points.

What will the banks do?

Big question that one.....Mole reckons they will drop an average of 50 points of the variable rate and then varying amounts (of around 20 points) off the 6 month through to 3 year rate with no change on their 4 and 5 year rates.

Big prediction will be that either one of Kiwibank or BNZ will see the opportunity to go hard out for market share and introduce a cut price 5 year rate that will knock everyone's socks off and force the other major lenders into another reduction in their long -term rates.

Well lets see what happens tomorrow and beyond.....

Ta ta for now

The Mole