Cullen jumps the gun and cat jumps out of the bag

Oops ... the cat was let out of the bag by Finance Minister Michael Cullen yesterday - a cat with the rather formal name of Official Cash Rate.

Tripping over a patsy question in the House, Cullen spoke of growth so strong that the Reserve Bank had been forced to raise rates - today.

That was one day too early.

He then scrambled to stuff the cat back in the bag, to hissing and scratching from the Opposition.

National Finance spokesman John Key spied a breach of protocol.

The gaffe, he said, had the potential to cause "a major disruption in the marketplace" as investors took advantage of the 24-hour head start.

Hmmm ... bit of a long bow, that one.

Economists were all but unanimous that Bollard would lift the official cash rate to 6.25 per cent.

Their main interest is the tone of today's announcement - as a clue to more increases - and that cat remained fully bagged.

Challenged by Key in the House, Cullen beat a hasty retreat.

He would be "very surprised indeed" if a rate rise did not come today, but the Reserve Bank Governor "certainly has not told me what his intentions are".

Later, in a contrite statement, he said he had "inadvertently and in error" added "today" to his answer in the House.

"The Governor traditionally briefs the Minister of Finance on the outlook for the economy before making his statement, but he never discloses his decision on interest rates."