Bollard tipped to tighten rates

Tuesday 8 June 2004

Market economists are confident that Reserve Bank Governor Alan Bollard will tighten interest rates a quarter-turn on Thursday, raising the official cash rate from 5.5 to 5.75 per cent.

By The Landlord

Analysts also expect the tone of the accompanying monetary policy statement to be on the hawkish side, foreshadowing a further tightening later in the year.

The financial markets are "pricing in" another rate hike by the end of the year.

At the last monetary policy statement in March Bollard left interest rates on hold.

At that stage the bank was forecasting economic growth to slow to around 1.75 per cent by March 2006, while the high New Zealand dollar provided an offset to the domestic inflation pressures which had built over two or three years of strong growth.


Since then, however, the economy has proven more resilient than expected and the exchange rate has dropped some 6 per cent from the level the bank's previous forecasts assumed.

Read More - Opens in a new window
Commenting is closed

Property News

Return to market form

There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Commercial

NZ proptech start-up scores major investor

Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.

Site by PHP Developer