Interest rates to stay put, forecasts NZIER

A prominent economic forecaster expects the Reserve Bank to sit on its hands on Thursday.

The New Zealand Institute of Economic Research believes the central bank will leave interest rates on hold for the year.

The Institute has also cut its growth predictions from 4.9 to 4.5 per cent for the 12 months to the end of March.

Meanwhile the National Bank has just announced a cut in one of its mortgage rates.

The bank has dropped its one year fixed rate from 7.8 to 7.7 per cent.

- NEWSTALK ZB