Fixing creeping back on the radar

Key highlights RBNZ leaves the OCR at 2.5%, but hints at possibility of an interest rate increase  as early as December. We expect interest rates will remain low over 2011, before lifting over 2012. Floating remains the cheaper option for now, but relative cost will depend on exact timing of interest rate increase.   Report prepared by: Christina Leung ASB Economist Phone: +64 9 369 4421 Fax: +64 9 302 0992