Migration Trend Support New Zealand Rate Hike

        17:47 EDT - RBNZ comments that floating mortgage rates could be 7% to 8% in two years time is in line with ASB Bank's view that the official cash rate will be at 4.5% in that time. ASB economist Christina Leung says the firm continues to expect the RBNZ to lift the cash rate to 3.25% in June, before pausing until December. Leung says the RBNZ names migration as a key upside risk to the RBNZ's housing market assumptions: "Recent migration figures appear to have been on the strong side of RBNZ expectations, (and are providing) some counterbalance to the strength of the NZD and the decline in dairy prices." (lucy.craymer@wsj.com; @lucy_craymer)
        (END) Dow Jones Newswires

        May 08, 2014 17:47 ET (21:47 GMT)