The Reserve Bank dropped the OCR by .25% today citing weaker prospects for diary prices and recent rises in petrol prices as risks to inflation growth.
Also mentioned was the forecast deterioration in the current account balance which would not be helped by a strong NZ dollar.
The Reserve Bank did also point out that house price growth in Auckland could be contained somewhat by addressing supply and limiting investor demand with its own LVR measures. The government’s new tax initiatives should also help.
October now becomes a key month with both new tax initiatives and LVR measures kicking off.
Article on new LVR restrictions
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
