Daily Alert: School's out for summer

  • The RBNZ came and went and did roughly what we thought they’d do. They’re now out of the game until the end of summer (23 February), so we’ll all have to find something else to write about. In brief: the OCR was lifted the regulation 25bps not 50bps, the Bank said explicitly that it planned to take the OCR up to the tighter side of (2%) neutral, and it duly forecast a further 7½ OCR raises through to the end of 2023, a peak of 2.6%.
  • This was all pretty close to what we’d expected, so we haven’t altered our interest rate view. We continue to see a lower peak OCR of 2.0% compared to the RBNZ and market.
  • Markets were a little more surprised, with the RBNZ’s OCR forecasts and explicit ruling out of 50bps moves (“considered steps…were the most appropriate”) a clear reality check for the aggressive pricing that had been factored in.

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Mark Smith

Senior Economist

Mark joined ASB in 2017, with over 20 years of public and private sector experience working as an economist in New Zealand and the UK.

His resume includes lengthy stints at ANZ and the Reserve Bank of New Zealand, and he has also worked at the Bank of England, HM Treasury and the New Zealand Transport Agency. Mark's areas of specialisation include interest rate strategy, macro-economic analysis and urban economics.

Born and bred in the Waikato, Mark studied at Waikato University where he graduated with a Master of Social Sciences, majoring in Economics.

Mark's key strengths are the ability to use his extensive experience, inquisitive nature, analytical ability, creativity and pragmatism to dig a little deeper and to deliver common sense solutions to tackle complex problems.

When not at work Mark likes to travel, keep fit and spend time with his friends and family.

Chris Tennent-Brown

ASB Wealth Senior Economist

Chris has worked as an economist for ASB and Commonwealth Bank of Australia in Sydney since 2005. His work has involved monitoring and forecasting trends in the New Zealand economy, with a focus on drawing implications for financial markets and investments. Chris is passionate about savings issues, and much of his current work is focussed on broadening peoples understanding of investments. Chris obtained a Bachelor of Commerce at Auckland University, majoring in Economics, and prior to joining ASB worked in the funds management industry for Bankers Trust and BT Funds Management. With over 20 years' experience in finance, Chris has also spent several years farming, and was a New Zealand representative cyclist. When not at work, Chris likes to travel, cycle, and spend time with his family and numerous pets.

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