Reserve Bank raises rates and signals more to come
Thursday 9 September 2004
As expected, Reserve Bank governor Alan Bollard has raised interest rates for the fifth time this year and is promising more to come is likely.
By The Landlord
As expected, Reserve Bank governor Alan Bollard has raised interest rates for the fifth time this year and is promising more to come is likely.He raised the official cash rate (OCR) from 6% to 6.25%, citing the surprising strength of the economy, stretched resources and strong inflation pressures.
Nobody was surprised at the move itself, least of all Bank of New Zealand economists who were already predicting another rate rise in October and a 40% chance of yet another move in December.
BNZ economist Stephen Toplis says his bank will probably move to a formal prediction of a December rate increase after today’s statement. That would take the OCR to 6.75% which he says "won’t be too far from the top."
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.
