The Reserve Bank of NZ made a move upwards on the Overnight Cash Rate and added thoughts about its Large Scale Asset Purchases. Some of these thoughts may lead to the sell back of Government Bonds over the next year. This in effect may feed upward pressure to longer term fixed rates.
In some sense the move was smart as in it was lite on the bite, a smaller increment of increase in the OCR than was expected but it left a prudent vibe on the horizon. Which in effect could mean less pain for borrowers right now but some tapping on the brakes of spending.
