"The steady climb in days to sell from October's lows suggests the balance between supply and demand is returning to normal, following a period of under-supply through spring," said ASB economist Jane Turner.

The REINZ monthly national housing price index fell 1.1%, seasonally adjusted, in February.

With increased listings and fears over tax changes on investment properties, "the lift in supply should reduce pressure in the market and house prices are likely to ease over 2010 following surprisingly strong gains in 2009," REINZ president Peter McDonald said.

Much of the usual investor interest at the lower priced end of the market was absent at present.

"Agents report an air of caution amongst buyers, most of whom are genuine homeseekers as opposed to investors.

"Most interest at present is in the $400,000 to $600,000 bracket and no change in interest rates is keeping the genuine home buyers in the market."

The largest gains in median house prices were in Taranaki, up 9.6% to $285,900, and Auckland, up 7.59% to $453,500.  Median prices fell in Otago, the only region to record a fall, by 0.44% to $223,000.

The ongoing decline in section prices also continued, with the REINZ monthly residential section price index falling 11.3% in the month of February, and are 3.4% lower than the same month last year.

"Households are still cautious, with house sales and credit growth remaining subdued. Business spending is weak despite much improved confidence."  

Economists, prior to the announcement, predicted a 25 basis point hike in the OCR by June 30 and increases totalling 1.25% by the end of the year.

Today's statement will likely keep that scenario intact. In fact it may even cause some of them to push out their predictions for when rates will start to rise.

Bollard also said today that he doesn't expect interest rates to increase to the high levels seen in 2008. He said that changes to funding costs for banks along with a big shift to shorter term home loan rates were helping the central bank do its job.

Bollard said there had been a shift towards mortgage rates of 12 months or less in duration. This means when the bank does change interest rates it will have a greater impact than when the maturity of the overall home loan book was for terms of two years or more.

"Because of increased bank funding costs, a shortening in mortgage duration and a positively sloped yield curve, we expect this tightening to have quite a powerful and relatively immediate impact on the economy," he said.  

A record-low OCR hasn't provided as much stimulus to the economy as might have been expected because banks have faced higher funding costs, Bollard said. 

"We expect these costs to persist over the projection, reducing the extent of future increases in the OCR." 

The Reserve Bank estimates the marginal cost of bank funding has increased to about 150 basis points above the OCR from as little as 20-30 basis points before the financial crisis.  

The projected track of the 90-day bank bill rate is almost unchanged from the December MPS, at 2.9% average in the June quarter, rising to 3.6% in the final three months of 2010, from an earlier prediction of 3.5%. 

The MPS notes that recent strength in house price inflation "appears to have been temporary," with activity in the housing market abating.

House prices remain high relative to incomes and affordability has been further hampered by rising mortgage rates. 

See a comprehensive list of home loan rates here

The $205,000 Raumanga property is a three-bedroom house with garage. It's fully fenced, insulated and had a heat pump fitted already. Allowing pets makes the property much easier to rent. She has just rented the Fairburn Road property at $300 per week, which is slightly below market rent.

Raumanga isn't always tenants' first choice and Sorenson warns landlords looking to buy investment properties in Whangarei to know their suburb before buying. Many of Whangarei's lower priced suburbs have good pockets and bad pockets - which you'll only find out if you drive around.

Median sales prices in Whangarei City are below the national levels, making the city accessible financially. Prices on starter homes suitable for rental start at just below $140,000. A 10% deposit on that isn't onerous to raise.

Rents being asked on TradeMe for one-bedroom properties in the city start at $145 a week, two-bedrooms from $180 and three-bedroom properties in the city start at $200 per week.

Market rental data shows, however that rents for two and three-bedroom properties have been declining since July last year. The worst area for Whangarei has been Kamo/Tikipunga/Kensington, with a 5.10% annualised drop in rent.

Having said that, rents appear to be stabilising, says valuer Mike Nyssen, a director at TelferYoung (Northland) and tenants are no longer trying to negotiate on price as they have done over the past 18 months.

In central Whangarei, median rents according to bond receipts sit around $300 per week for a three-bedroom house, $250, for a two-bedroom house and $165 for a one-bedroom flat. In Morningside/Raumanga/Maunu, they were $280, $240 and $150 respectively and in Ngunguru/Onerahi/Whangarei Heads and Waipu they were $300, $245, and $170.

The profile of Sorenson's recent purchase fits well with what L.J. Hooker Whangarei owner Michael Springford recommends investors to buy in the current market - although like Sorenson he would only recommend pockets of Raumanga.

That is investment property of up to $200,000. "You can probably get $250 for that per week (on the rental market)," says Springford.

But you'll need good management because at that level you don't always get the best tenants.

Sorenson, like many other investment property commentators, lists the top suburbs to attract tenants as Central - especially The Avenues area, Kensington, Maunu, Regent and Morningside.

Both Maunu and Morningside's newer developments are popular with tenants. And when it comes to schooling, says Sorenson, Maunu and Kamo schools are the draw cards - although the latter tends to be more expensive with more "executive" rentals priced in the $450 to $500 a week bracket.

Flats (now called apartments) aren't common in the city. Sorenson says, however, if they are renovated to a high standard they rent quite well.

"We have a number of blocks of flats with electric gates that we manage that are completely renovated with cleaners going through every fortnight."

It's easier to keep tenants longer when the entire block is either owned by one landlord or managed by the same property manager, because tenants are able to solve problems more easily.

And blocks of flats are the one area where Nyssen sees yields bucking the trend. Recent sales have seen such blocks sell at yields between 7% and 9.50%.

The other alternative for investors looking for yield, says Nyssen, are properties in fringe areas such as Raumanga, Otaika, and Tikipunga - where mortgagee sales are becoming common.

Mortgagee auctions are increasing in Whangarei and the investors that are buying are often snapping up bargains. Springford says many people bought up large during the boom thanks to attending investment seminars and are now finding they can't make ends meet.

He cites the example of a mortgagee auction at the end of November in which a property valued at $280,000 sold for $218,000. It had storage units at the back and was pulling in $600 a week in total rent.

Another example of the bargains available is one property Springford for sale that was originally bought by an investor for $240,000 is currently on the market for $198,000 - and even then there have been few enquiries.

State of the economy
Economy-wise Whangarei has been hard hit by the recession with unemployment rising.

The number of unemployed job-seekers in Whangarei climbed by 44.20% in the year to June 2009 and the unemployment rate rose to 8.60% in the June quarter from 4.40% in the same quarter in 2008.

Hard hit in the city is the constructions industry - after residential consents declined by 27% and non-residential consents by one third, says economic forecaster Infometrics' Andrew Whiteford. The tourism industry has also been hard hit as well with guest nights falling by 5.50%.

Good news for investors is that the population is projected to grow from 74,430 in 2006 to 109,235 in 2041, and to 129,678 in 2061. That's 1.35% or 1,004 additional people per year, with the number of occupied dwellings in the Whangarei District projected to increase from 27,993 in 2006 to 41,704 in 2041, and to 49,785 in 2061. That represents almost 400 additional dwellings per year.

Having said that, new development in Whangarei has largely stalled, says Nyssen.

House prices
House prices in Whangarei, like many regional centres, but unlike the big cities, are still sitting well below peak levels. Currently in Whangarei sellers are getting 2004/5 prices - and many sellers are struggling to get the price they want. Springford thinks this is in part because provincial centres aren't benefiting from immigration in the way the main centres do.

Nyssen doesn't predict that there will be a house price recovery in Whangarei in a hurry. But when it does come, he expects to see prices begin to rise first in the central areas including Regent, Mairtown, Kensington and The Avenues.

"That is traditionally what happens after the bottom of the market. Most astute landlords will know this."

Some of the problem may be that investors, says Nyssen, are mainly "sniffing around" because they can't find the yields they need.

Those investors in the market are looking hard to find properties with a twist. "If you don't find a twist, the rentals don't add up," says Springford.

Another twist is buying an entire block of flats, which are good renters in the city, but are few and far between.

"Every now and then something will crop up."

That includes subdividable properties, says Springford. The smallest lot size you can subdivide to without applying for resource consent in Whangarei is:

• Living 1, 500 square metres
• Living 2, 350 square metres
• Living 3, 200 square metres.

You can also apply for resource consent to go smaller. Subdivision typically costs around $60,000 to $70,000 in the city, he adds.

Rental demand
Property managers can see the drop in demand on the ground.

"A couple of years ago we couldn't get enough rental property," says Sorenson.

The drop in rental prices has seen a flight from the less desirable areas to better areas as tenants find they can afford more. Otangarei, which has large concentrations of Housing New Zealand homes and parts of Raumanga, have been affected by this, says Sorenson.

Roger Raymond, president of the Northland Property Investors' Association sees some investors buying in the city and at the last association meeting of the year one investor said he planned to do a small development.

"There is good buying now, but most [investors] are waiting," says Raymond.

More investors would be buying if the banks would "be more accommodating", he adds. "Finance is a real challenge."

Raymond and his wife Susan have recently bought two new homes in Whangarei central. They are what he describes as higher end rentals, which are more difficult to let.

Sections - particularly on the coast - says Raymond, just aren't selling. It's an observation mirrored by Springford, who has seen some phenomenal bargains.

Springford's argument is that investors can buy sections for $60,000 to $90,000 and build a new home on them for less than an older-style property, making them an attractive proposition if you can get the finance.

In 2007 and 2008 tenants showed a distinct desire to live closer into town, says Raymond - thanks to petrol prices. But memories are short and now it doesn't seem to be such a huge factor.

Even so, says Sorenson, unlike cities like Auckland where people are prepared to commute half and hour or more, Whangarei's tenants typically like to be within walking distance of work or a very short commute.

The one exception to this is overseas doctors, who make up a reasonable chunk of renters at the higher end of the market. Because coastal properties are remarkably cheap to rent compared to the UK and other countries where the doctors hail from and they're used to commuting, many choose coastal areas such as Onerahi to rent, she says.

Doctors, in part, account for seasonal swings in the Whangarei property market. Sorenson sees a distinct upswing in enquiries in December. This is due to the rotation of junior doctors at Whangarei Hospital, says Fleur King, communications manager at the Northland District Health Board. Junior doctors are rotated in January and July between Auckland and Whangarei. International doctors from the UK and other countries do not come in at any set times of the year.

The medical industry, including private providers such as White Cross, are very important to the rental market, says Sorenson. Unlike doctors, who arrive en-masse twice a year, nurses tend to blend into the normal mainstream rental market.

Virtually everyone agrees that the younger generation is getting much more demanding in their requirements for rental property.

"The ‘me' generation wants flasher properties," says Raymond. "Because we are letting newer homes we are getting a lot of people who either can't afford the rent (for better properties) or over commit themselves."

It makes it easier for landlords with newer properties or older ones that are well-maintained and have heat pumps, ventilation systems and insulation. Many landlords in the city have taken advantage of the government's subsidies to have their properties insulated.

That makes it harder for the slum landlords, says Raymond.

"Since the government first raised the issue of property tax changes in August last year, there has been an increase in the exodus of landlords from the rental market, mainly landlords who have been in the market for a long time," he says.

Figures from Trade Me show available listings for rentals as 1,800 for Auckland in February, compared to 2,441 in January and 2,501 in February last year.

"The number of rentals available is shrinking and with building consents down, it seems there's nothing to replace them," Boberg said.

However, Helen Hodgson, rental manager coordinator at Barfoot & Thompson believes things are not as bad as Boberg is making out.

"Certainly there's a big shortage of listings, but it's not unusual for this time of year," she says.

Barfoot & Thompson's average weekly rent has gone up 2.5%, currently at $390 for February compared to $380 the same time last year, while the number of listings is down 10%.

Hodgson says another reason for shortages are ex-pats returning home from overseas and giving notice they want their property back and therefore pulling them out of the rental pool.

"The shortage is not entirely investors putting properties back onto the market."

Another reason for the lower number of rentals, she says, are that a lot of tenants in managed properties are staying put, meaning there is less turnover.

"I always see rental business as transient, but I don't think we're heading for a crisis.

"[But] we'd all love some more listings, that's for sure."

"The annual change in values across New Zealand has continued to increase from last month, but this is masking what has happened in the most recent months," said spokeswoman Glenda Whitehead.

"We expect values to stabilise over the coming months reflecting the ongoing uncertainty around economic factors such as unemployment, pending interest rate rises and continued tight lending criteria."

More Auckland home owners are looking to sell their properties with the city's largest real estate agent Barfoot & Thompson logging the highest number of listings since March last year. House sales fell near a 20-year low in January as fears over what the government will do to property tax and high unemployment dented people's confidence in the market after it revived the economy last year.

Whitehead said sales activity picked up in February and is "back to similar levels to that observed throughout 2009".

The higher number of listings is expected to translate into more sales in the coming months, she said.

"The market remains patchy and buyers cautious," she said. "Well presented, good quality properties are continuing to sell quickly and at healthy values, whereas those with less desirable attributes are proving hard to shift."

In Auckland, property values increased 8.7% in a rolling three-month period ending February 28 from a 7.3% gain in January, while the average sale was stable at $549,028.

In Wellington, values increased by 6.7% in the rolling three month period, from a 5.7% gain reported in January. The average sale price rose to $468,698 from $460,638.

Christchurch property values rose 6.9% from a 6.3% gain, with the average sale price edging up to $380,925 from $380,268.

To find out what's happening in the main regions, click here.

Auckland
Property values in the Auckland region increased by 8.7% over the past year (calculated over the three months ending February 2010 in comparison to the same period last year), an improvement on the 7.3% annual growth reported in January. The average sale price for the region remained relatively stable at $548,948.

Glenda Whitehead of QV Valuations said; "The mixed messages from the market continue with activity levels patchy between suburbs and the types of properties selling. It is also possible that the varying financial positions of buyers and sellers are affecting trends within some suburbs. Interestingly, this lack of specific market direction is resulting in more stable values".

"The inactivity of December and January now seems to be behind us, with the latter part of February bringing more action from both buyers and sellers.  However, this action to date is resulting in more listings and more buyers actively looking, but it will take time to convert into actual sales.

"In many suburbs, a quick drive through the streets indicates that more listings have come to the market, and we have noticed that buyers are also scoping the market place, but with a continued degree of caution. It will be a relief to many buyers to have more stock to choose from. Market sentiment is not however mimicking the activity that was building this time last year, when many feared missing the low of the market," she said.

"In central Auckland's apartment market, there has recently been some talk of values dropping. The only evidence we have seen of this stems from mortgagee sales or distressed vendor circumstances, and while these sales are still occurring, they are not as prevalent as in the past. Consequently, these sales are impacting less on the wider apartment market where values appear relatively stable," Whitehead said.

"Within West Auckland, the market appears to be ticking over steadily. Buyers seem to be taking the time to do their homework thoroughly. There are still a few investors around, looking for good buys. While some properties are taking a bit longer to sell than perhaps expected, other well priced and presented homes are selling relatively quickly. In the Eastern Manukau suburbs of Pakuranga and Bucklands Beach through to Howick, market activity continues with stable prices and a feeling of consolidation."

"There is a lot of talk about the positions being taken by investors leading up to the May budget announcement on tax treatment of investment property. Anecdotally, evidence suggests that some may be looking to bail out before that date, while others appear to be content to hold. The stance adopted is likely to reflect the ownership and tax regime of each investor and their perceived outcome of the budget announcement."

Hamilton
Property values in Hamilton increased by 4.3% over the past year (calculated over the three months ending February 2010 in comparison to the same period last year), an improvement on the 3.5% annual growth reported in January. The average sale price for the city increased from $350,722 to $361,394.

Richard Allen of QV Valuations said; "Although our most recent figures show some growth since February 2009, the QV Index for Hamilton continues to fluctuate within a very narrow band, indicating that the residential market has almost completely flattened off.

"Most parts of the city are experiencing this trend, with the largest year-on-year increases in Hamilton North East, the South and the South West. The Central City/North West Hamilton area was the exception, with year-on-year values decreasing from 5.8% in January to 4.9% in February."

"Although Hamilton's average sale price increased from $350,772 in January to $361,394 in February, it appears that this is most likely the result of activity in the top-end of the market rather than a general increase in value levels. In particular, there has been heightened activity in the north east of the city, as well as in some of the other areas where property is traditionally more expensive," Allen said.

"With interest rates likely to increase mid-year, uncertainty in the economy and agricultural sector, as well as a lack of investor interest, there is not a whole lot to stimulate the residential property market in Hamilton at present. As a consequence, it appears that we are headed towards a sustained period of stability," he said.

Tauranga
Property values in Tauranga increased by 1.0% over the past year (calculated over the three months ending February 2010 in comparison to the same period last year), a slight improvement on the 0.6% annual growth reported in January. The average sale price for the region increased slightly from $422,226 to $422,746.

Shayne Donovan-Grammer of QV Valuations said "Tauranga's property market is moving forward in a cautious but positive manner. Investors are still on the sidelines, reassessing their next move and trying to make sense of the proposed tax reforms. Owner-occupier buyers are active, but still looking for sharp prices and in many cases vendors are happy to oblige in order to alleviate their financial burden".

"Most buyers are aware that interest rates are lower than historical averages and are factoring in potential rises when purchasing. A steady up-take of vacant land and house and land packages is promising, as developers work hard to keep the momentum going by offering encouraging deals.

"With existing properties, the $250K to $300K bracket is fairing best, while homes in new subdivisions under or around $400,000 are creating the most interest. Surprisingly, entry level stand alone properties of $220,000 or less are sluggish due to the lack of investors. These properties became over priced when investors flooded the market a few years ago and accelerated values above their inherent worth," Donovan-Grammer said.

Wellington
Property values in the Wellington region increased by 6.7% over the past year (calculated over the three months ending February 2010 in comparison to the same period last year), an improvement on the 5.7% annual growth reported in January. The average sale price for the region increased from $460,638 to $468,698.

Kerry Buckeridge of QV Valuations said; "The anecdotal lift in listing activity we felt in late January has certainly followed through into February. Most real estate agents around Wellington report being extremely busy listing new properties. Sales are occurring, but in many cases it is taking a lot of work to get them across the line.

"Buyers are being very cautious, often inserting multiple conditions into their offers and appear to be focused on sensibly priced, good-quality homes. A very noticeable recent trend has been the amount of valuation work being initiated by vendors seeking guidance on the pricing of their property."

"In terms of value trends, we continue to see gradual monthly growth, albeit a little more subdued than last year. This could be leading to a period of stability, especially given the rapid increase in the amount of housing stock on the market. Some price brackets are performing better than others. Interestingly, lower-end properties in the city area are selling very quickly, along with properties at the very top end of the market.

"The lower-end of the market appears to be driven by first home buyers, despite banks being tougher on deposit requirements than they used to be. Investors appear to be taking a back seat for now, possibly seeking clarity on tax changes and interest rates before making their next move," Buckeridge said.

Christchurch
Property values in Christchurch increased by 6.9% over the past year (calculated over the three months ending February 2010 in comparison to the same period last year), an improvement on the 6.3% annual growth reported in January. The average sale price for the city increased marginally from $380,268 to $380,925.

Melanie Swallow of QV Valuations said; "Property values showed a slight recovery in Christchurch during February. Along with the fairly flat average sales price, this indicates stabilisation in the market. Suburban Christchurch has held well with the South West suburbs showing the greatest recovery, up 8.7% from this time last year."

"These results appear to be encouraging but they should still be treated with caution and are more likely indicating solidification in the market. Activity is still segmented in the eastern suburbs, which are showing a small decrease of -0.4%. The majority of housing stock here tends to fit into the entry-level to mid part of the market.

"In the southwest, central and northern suburbs, entry level housing is still doing well, with a lift in enquiry and activity. The number of listings for sale is on the rise and signs of a more traditional market are emerging. We recommend that purchasers continue to exercise caution with their buying decisions. There continues to be some uncertainty in the market place, although sentiment overall is upbeat. Another two or three months should provide a clearer indication as to the direction of different market segments," Swallow said.

Dunedin
Property values in Dunedin increased by 6.2% over the past year (calculated over the three months ending February 2010 in comparison to the same period last year), up on the 5.0% annual growth reported in January. The average sale price in Dunedin increased from $279,101 to $285,787.

Tim Gibson of QV Valuations said; "The positive growth in Dunedin's residential property market is evident in all areas of Dunedin, with coastal Dunedin playing catch-up to other areas in terms of year-on-year growth. However values are still 3% below the market peak of July 2007".

"The uncertainty which has persisted in the property market since Christmas still remains, and can be confirmed by other underlying indicators. QV's residential price index has shown a decrease for the second consecutive month - a guide that values may be leveling out within Dunedin. This is also a trend shown by more provincial areas of New Zealand over the past two to three months," Gibson said.

"It has been reported that property listings for the month of February have increased significantly since low volumes experienced over December and January. This may be due to more investors selling-out before the government budget is announced in May, when taxation details are due to be confirmed. The next two or three months will be a good guide as to how the property market will perform during 2010," he said.

Barfoot & Thompson saw the most listings in 23 months come onto the Auckland market last month, as 1,714 new properties became available.  

Investors appear to be sitting and waiting.

Geoff Lovegrove from The Professionals in Manurewa was expecting 2010 to be a good year for the market, but says activity suddenly stopped after the Tax Working Group announced its first recommendations on taxation of the sector in November.

"It was literally like a tap turned off," he says.

The market now appears to be in a state of wait-and-see, with the government due to announce tax changes in the May Budget.

But Lovegrove says with the number of listings on the market, there is excellent buying opportunities out there for investors unwilling to play the waiting game.

"There's awesome buys at the moment. I come across properties every day that if I was investing heavily at the moment I'd be buying - every day!"

He is still seeing deals with 7% and 8% yield in South Auckland and with rents only set to go up further to offset possible changes to tax and depreciation claims, he believes now is the perfect time for investors to be buying.

He has seen a "little bit" of investor activity recently, but says it is 50% down on September to November.

Waikato Property Investors' Association Nancy Caiger also believes now is the perfect time to buy.

"It's a good a time as any to buy if you're prepared to buck the trend. Buyers are panicking out of the market, so deals are out there."

However, she says finance and tightening bank criteria is holding a lot of investors back at present.

"People are still looking but finance is not always coming through."

Auckland house prices rose 3.2% to $521,323 last month from January and were up 1.7% from the same month in 2009. The historically high price for the month of February also bucked the trend of the past couple of years, which has seen the average February price between $10,000 and $20,000 below the average for the previous year.

"While a seasonal uplift was expected [in February] as people returned from the summer break, an average February price close to that for the average of the previous year (2009 yearly average: $522,297) has never occured previously," said managing director Peter Thompson.

The firm boosted the number of sales 7.4% to 626 from January, and it was up 12% from February 2009. Still, that leaves 544 properties that were either sold by another real estate agency or taken off the market.  

"The main driver of buying activity remains owner occupiers, either trading up or moving into the Auckland area, and for these people, concerns about any changes in government policy around housing or any modest interest rate increase are not major deterrents," Thompson said.

Nationally, house sales fell to close to 20-year lows in January as uncertainty over property tax changes and historically high unemployment dented people's confidence in the market after its revival last year underpinned the economy's recovery.  

Thompson hinted high property prices may be a thing of the past, saying the "balanced state of the market" meant sellers need to ensure they sell at an appropriate price.  

The real estate agency's property management division recorded a 2.7% fall in average weekly rentals to $390.

Website founder Seamus O'Sullivan believes there is huge potential for those who are in the business of downgrading, as well as upgrading properties.

"Swapping will only work where people are willing to downsize, not just upsize," he says, which is where investors can come in.

Traders for example can swap a new or newly renovated home for one that is in need of doing up or has subdividible potential.

Having a deal based on value differences rather than on the total value of a property, plus the fact that deals need to be settled on the same day, creates an equal market for people to operate in.

"Swapping creates an even playing field. It doesn't matter what the property is worth, it only matters what the value gap is," says O'Sullivan.

He says the swaps market is also a good option for people who can no longer afford their mortgage and are facing mortgagee sale, to downgrade to something they can afford.

"Someone with a mortgage of $300,000 but with a property worth $400,000, can effectively end up with $100,000 cash in their pocket and retain the full value of the property rather than selling at a loss at mortgagee sale."

Despite the swaps market widely used overseas, Waikato Property Investors' Association president Nancy Caiger says there are issues with New Zealand being so small.

"It can become tricky to get the perfect swap because of limited options," she says.

"Greater density places like England, it is easy to swap. But here, you might get one property in Invercargill, 10 in Auckland and five in the Bay of Plenty, for example, but the supply demand balance in each area is different."

She says agreeing on valuations could also be an issue, but O'Sullivan says they encourage people to get independent valuations.

Asked if the model could be sustainable in New Zealand, O'Sullivan said that will only be discovered in hind-sight, but "the answer in this market is probably yes. People have limited choice".

In mortgage rates changes Westpac shimmied up its six-month rate last Friday by six basis points to 5.75% and cut its one-year rate by four basis points to 6.25% bringing it in line with the median rate for the major banks. It also reduced its revolving credit rate to 5.65%.

In Expert Views most economists have been looking at what will happen at next Thursday's Official Cash Rate (OCR) announcement and across the ditch the Reserve Bank of Australia (RBA) pushed up its official cash rate by 0.25% after a pause in February to 4%.