NZIER has said hold the interest rates. I agree.
Small business drives a lot of growth in this country and while recovery is happening it is painfully slow. Look at all the small offices and factories still for lease. Until vacancy rates fall this shows that small business does not have the confidence to take on a new lease.
Secondly, mortgageee sales are still high. I believe this is the tip of the debt iceberg. Owners of small businesses often borrow against their private homes to stay afloat. There are many out there wrestling with paying mortgages to keep their businesses afloat. If interest rates go up, quite a few will hand their house keys to the bank and walk away. I say leave interest rate increases till September.