Shutting door on rate rises raises an eyebrow

Monday 1 November 2004

Reserve Bank Governor Alan Bollard might have scored an own goal by being so explicit that he had finished raising interest rates, economists said yesterday.

By The Landlord

Because of the hawkish tone of his monetary policy statement only six weeks ago, Bollard had been expected to at least leave the door open to a further rate hike.

Instead he all but slammed it shut when announcing the official cash rate would be raised 25 basis points to 6.50 per cent.

The two reasons he gave were the strength of the dollar and confidence his recent interest-rate hikes would eventually work their way through the economy.

But the dollar fell after the announcement, ending the day six-tenths of a cent lower against the United States dollar and 1.25 cents lower against the Australian.

Read More - Opens in a new window
Commenting is closed

Property News

Key reform will only protect bad tenants

Getting rid of “no cause” termination notices only serves to protect bad tenants and will have a negative impact on the broader community, not just landlords, according to landlord advocates.

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.


Demand challenges for commercial sector

Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.

Site by PHP Developer