Welcome to the September 14 edition of the BNZ Weekly Overview.
The main point of interest for the financial markets this week was this morning's review of the official cash rate. As expected the rate was left unchanged at 7.25% but the Reserve Bank warned they may need to increase the rate again. This comment was far more hawkish than expected and has caused the Kiwi dollar to jump up to 65.5 US cents and 87 cents against the Australian currency. Fixed borrowing costs have also gone up and we are likely to see a round of fixed interest rate increases in the very near future.