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
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