Get ready for two more rises
Monday 13 September 2004
Another two interest rate hikes before the end of the year are a strong possibility after the Reserve Bank's hawkish monetary policy statement yesterday.
By The Landlord
Governor Alan Bollard raised the official cash rate from 6 per cent to 6.25 per cent - as expected - and warned that further tightening was likely."The words promise one more in October, but the numbers are projecting two more," said Westpac chief economist Brendan O'Donovan.
The Reserve Bank has raised its interest rate projections, and now has 90-day rates holding at around 6.75 per cent through next year and 2006.
It predicts the exchange rate will stay high for another six months or so before it declines, and its short-term growth expectations are higher than they were three months ago.
Read More - Opens in a new window
Commenting is closed
Property News
Major industrial development powers on
It’s full steam ahead for the Stevenson Group’s $800 million, 361-hectare industrial and residential development in South Auckland – despite the uncertainties of the post-Covid-19 era.
House Prices
House price drops are short-lived - Alexander
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
Commercial
Resilience needed in face of change
The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.
