For now, the market believes rates are not set to rise anytime soon. This is our view too. Only a couple of hikes are expected by the market by 2020. The Bank indicated they think rates will rise more quickly than the market expects but they didn't say when. Yet, with the Bank now expecting wages to rise by 3 per cent next year, lower than they previously thought, and expecting domestic cost pressures to remain subdued, one can understand why the market has taken the view it has: policy will remain on hold for now.