IRG BOP investment adviser Jonathan York is concerned about Reserve Bank of New Zealand Governor Alan Bollard's decision to increase the Official Cash Rate to 2.75 basis points. This is the first increase in the OCR for three years and is an indicator that the economy is recovering from recession.

See video below of IRG BOP's weekly market update.

But, there is concern that the smaller economies around New Zealand are not quite ready for the OCR increase. The expectation is that the OCR will now begin on a steady upward trend over the next 12-18 months, with the Reserve Bank making adjustments at each six week review. The next is July 29.