ISI Supportive of OCR Increase
Thursday 10 Jun 10 10:05pm
The Investment Savings and Insurance Association (ISI) believes the Reserve Bank’s decision to increase the Official Cash Rate (OCR) to 2.75% is a positive sign for the economy.
ISI chief executive Vance Arkinstall says the move to increase the OCR is the first clear signal from the Reserve Bank that an economic recovery is underway. “The Reserve Bank is signalling its confidence that growth is slowly returning to the market,” says ISI chief executive Vance Arkinstall.
Unlike previous periods of economic growth, Mr Arkinstall believes the economic recovery will be export-led rather than consumer-driven and this will be good for financial markets.
“While the recovery is likely to be slow and subject to volatility, it is a sign that augurs well for markets and the future of managed funds. Investors will treat this announcement as a positive sign.”