OCR cut expected after Christchurch earthquake

Key highlights Domestic interest rates fell sharply as Christchurch earthquake led to growing speculation of an OCR cut. NZ dollar also fell sharply as a result, although Fonterra's announcement of higher dairy payout limits depreciation. Risk aversion offshore driven by escalating tensions in the Middle East/North African region.     Report prepared by: Christina Leung ASB Economist Phone: +64 9 369 4421 Fax: +64 9 302 0992