The Reserve Bank today left the Official Cash Rate unchanged at 2.25 percent.
It seems that the RBNZ felt that there is some fire in the belly of the NZ economy, supported by strong inward migration, tourism and the already low interest rates.
They did note that the dairy export prices have improved somewhat, however are still below the break-even level for most farmers. The exchange rate is also stubbornly high given the low diary prices.
House price inflation in Auckland may be picking up which could use some increase on the supply side. House market pressures have been noted outside of Auckland as well. Low oil prices could also feed into inflation pressure.
“Monetary policy will continue to be accommodative. Further policy easing may be required to ensure that future average inflation settles near the middle of the target range. We will continue to watch closely the emerging flow of economic data.” (RBNZ)
This article has been written by Hamish Patel, mortgage broker with mortgagesonline.co.nz. Ph: 09 625 4693, Mobile: 021 625 693, hamish@monline.co.nz
OCR stays the same – what was said
The Reserve Bank today left the Official Cash Rate unchanged at 2.25 percent.
It seems that the RBNZ felt that there is some fire in the belly of the NZ economy, supported by strong inward migration, tourism and the already low interest rates.
They did note that the dairy export prices have improved somewhat, however are still below the break-even level for most farmers. The exchange rate is also stubbornly high given the low diary prices.
House price inflation in Auckland may be picking up which could use some increase on the supply side. House market pressures have been noted outside of Auckland as well. Low oil prices could also feed into inflation pressure.
“Monetary policy will continue to be accommodative. Further policy easing may be required to ensure that future average inflation settles near the middle of the target range. We will continue to watch closely the emerging flow of economic data.” (RBNZ)
This article has been written by Hamish Patel, mortgage broker with mortgagesonline.co.nz. Ph: 09 625 4693, Mobile: 021 625 693, hamish@monline.co.nz
More Posts
Now what? Will oil and interest rates only head one way?
Staring at what seemed like a cloudy horizon, I made two calls:I contacted an EV car dealer, trading in my diesel, and called my electrician
Can you be clean ethical and make money?
Can you have your cake and eat it too? I have been a little cynical and thought profit and being dirty fit together snugly. But
Starting a build project safely means checking out the builder
The building dream Imagine building your home to the point of an empty shell when a large event shuts down the whole country. This happened
Is the NZ housing market finally making a move? Key takeaways from the latest REINZ stats
For the past year (or more), the market has felt flat. The latest REINZ January vs last January comparison suggests we may be seeing the
Send Us A Message