EU talkfest no silver bullet

Key highlights EU summit comes up with few developments to contain the escalating European debt crisis. RBNZ leaves OCR on hold as widely expected, and indicates global conditions mean OCR increase unlikely until 2012 Q3. We continue to expect OCR will remain on hold until December 2012, with pauses in the tightening cycle likely.     Report prepared by: Christina Leung ASB Economist Phone: +64 9 301 5661 Fax: +64 9 302 0992