Interest rates likely to rise

NZIER reports:

Regarding where the OCR should be in a year’s time, the Shadow Board’s core view ranged from 4.50 percent to 5.75 percent and centred on an OCR of 5.50 percent – a shift from 5.25 percent in the August NZIER Shadow Board. There was an increased view amongst members that another increase in the OCR may be required, given the stickiness of inflation and high inflation expectations.

So the NZIER Shadow Board consensus is that interest rates are no longer forecast to stabilise and drop, but will increase even further. Floating mortgage rates are already over 8% – will they hit 9%?