Last weeks OCR cut brought hope of lower interest rates but the wholesale market seems to have been spooked by the Reserve Bank ruling out further cuts. 

The term wholesale interest rates have jumped in response.

ASB Chief Economist told Heather du Plessis-Allan, "we certainly put the the cost of wholesale borrowing up a bit higher as a result of this."

LISTEN ABOVE

Last weeks OCR cut brought hope of lower interest rates but the wholesale market seems to have been spooked by the Reserve Bank ruling out further cuts.&nbsp;
The term wholesale interest rates have jumped in response.
ASB Chief Economist told Heather du Plessis-Allan, "we certainly put the the cost of wholesale borrowing up a bit higher as a result of this."
LISTEN ABOVE

With a straight down the middle approach, Heather du Plessis-Allan Drive on Newstalk ZB delivers the very latest news and views to New Zealanders as they wrap up their day.

Heather du Plessis-Allan Drive

Nick Tuffley: ASB Chief Economist on why your interest rates aren't coming down

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/560f2393-984f-486f-b52e-b3a600574972/transcript