Reserve Bank expects to start OCR upwards adjustment “soon”.

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

Within this mornings announcement was the following…”While headline inflation has been moderate, inflationary pressures are expected to increase over the next two years. In this environment, there is a need to return interest rates to more-normal levels. The Bank expects to start this adjustment soon”.

While it seems clear the first raise in the OCR is now close, one could also read the Reserve Bank is in no great hurry to rapidly raise the cash rate if “inflationary pressures” are to be measured over a period of 2 years..

NZ$ down 3/4 of a cent this morning on traders who had bet on a possible rate rise this morning clearing out of the way..

Go The Black Caps 🙂

 

Westpac launches a new construction loan package with up to 90% Finance

In response to recent changes by the RBNZ, Westpac has launched a new construction loan package. First home buyers can catch a break as finance is being made available up to 90% for ‘turn key’ new builds.

A key change is that it provides for a repayment holiday period for up to a maximum of 12 months with the lending being interest only during the construction period. Pre-approval lasts for 12 months, giving plenty of time to find a section and plan the build.

Hope your Fishing was good over the Holiday break.  😉