The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.5 percent.

Reserve Bank Governor Graeme Wheeler said: ““Growth in the New Zealand economy has picked up. Consumer spending has increased and rebuild activity in Canterbury is gaining momentum. House price inflation is high in some regions, despite prices already being elevated. The Bank does not want to see financial or price stability compromised by housing demand getting too far ahead of supply.”

He restated the outlook given at the March statement of “At this point we expect to keep the OCR unchanged through the end of the year.”

The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.5 percent.

Reserve Bank Governor Graeme Wheeler said: “We project the economy to grow at an annual rate of between 2 and 3 percent over the forecast period. Inflation is expected to rise gradually towards the 2 percent midpoint of the target range. There are both upside and downside risks to this outlook. At this point we expect to keep the OCR unchanged through the end of the year.”

At auction yesterday there was a determined tussle for a renovated 3 bedroom weatherboard townhouse @ 1/98 Astley Avenue in New Lynn.  It was “on the market and selling” @ $500,000, but dogged bidding in $500 to $1,000 lots amongst 3 parties saw the winner outlast the others @ an eventual $541,500.

The Reserve Bank yesterday left the Official Cash Rate (OCR) unchanged at 2.5 percent.

The closing statement was “On balance, it remains appropriate for the OCR to be held at 2.5 percent.”.

An explicit warning was aimed at the heated property market..”House price inflation has increased and we are watching this and household credit growth closely. The Bank does not want to see financial stability or inflation risks accentuated by housing demand getting too far ahead of supply.”