Fixed vs Floating Report (News with Bernard Hickey)

RBNZ decision Thursday Expected to hold Outlook is key First rate hike and peak Economists say December 6 Rising to peak 4.25% By late 2013 Markets say 2015 Westpac says 6% peak 2015 Suggests people fix 2-4 yrs Westpac offers around 6.0% Floating at 5.60% If OCR up 3.5% Implies over 9% floating Will rates rise fast? Or lower for longer? Markets saying 25 bps d then slow rise higher Economists say faster hikes Depends on growth, inflation RBNZ may soften December But suggest faster rise Higher peak through 2013 Key is 90 day track Swaps rates up 30-50 bps Last two-three weeks Fixed vs floating decision Appetites for risk View on future rates Lower for longer Early 2009 5 yr avg 6.4%