All eyes are on interest rates, after yesterday's CPI drop

Overall inflation has dropped to 3.3 percent in the year to June, and non-tradable inflation was down to 5.4 percent.

ANZ has followed Westpac in cutting advertised home loan rates -- as more economists begin to forecast a cut to the Official Cash Rate in November.

But former Finance Minister Steven Joyce says the Reserve Bank, and banks, will be wary about what comes next.

He says we're still a knife edge, with an economy continuing to really struggle.