The Reserve Bank has today kept the OCR @ 1.75%.
Of interest was the lengthening of the period that it could remain at this low level. “”We expect to keep the OCR at this level through 2019 and into 2020″”
Swap rates, the drivers of fixed interest rates, have declined today as a result.
The Reserve Bank has held the Official Cash Rate today @ 1.75%.
They noted they are ready to raise or lower the rate if required.
The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.0 percent. The Fed Funds rate in the USA was also left unchanged.
Our Governor indicated that on current projections the Cash Rate will need to fall further to ensure inflation gets up to the middle of the target range.
The ANZ, NZ’s largest Bank, has passed on to its floating rate borrowers a measly 0.05 of the 0.25% cut in the OCR this morning.
After announcing the cut Reserve Bank Governor Graeme Wheeler commented: “We would like to see most of (the OCR cut) passed on.”
In the OCR announcement there is a bias toward a further cut.
The Reserve Bank today left the Official Cash Rate unchanged at 2.25 percent. There is a bias towards further cuts with the statement “Further policy easing may be required “.
The Auckland housing market got about as strong a warning as it gets from a Reserve Bank with “Auckland house prices in particular are at very high levels….”.
The Reserve Bank today left the Official Cash Rate unchanged at 2.25 percent. The housing market was mentioned as has regularly been the case of recent times.
“”There are some indications that house price inflation in Auckland may be picking up. House prices remain at very high levels and additional housing supply is needed. Housing market pressures are building in some other regions””
Keeping a wary eye on what is happening in Australia given that the large lenders here are all Aussie owned it was interesting to note that yesterday Westpac Australia announced it has stopped lending to foreign property buyers and non – residents. The bank also said it was tightening lending requirements on Australian citizens and permanent visa holders who depended on overseas income, reducing the maximum amount it will lend on property to 70 per cent.
This morning the Reserve Bank updated us with their view of interest rates and the economy which resulted in a cut to the Official Cash Rate to 2.25%. A change in the OCR results in movements in our home loan floating interest rates. As such all of the banks are likely to reduce their floating or variable rates today. Of course for existing customers this reduction will be future dated so the banks can squeeze a few more days on a higher rate out of their customers.
Following the US Fed Announcement this morning the NZ Reserve Bank also kept the benchmark rate on hold.
The growth in Auckland house prices received its customary mention with the warning that it remains a “financial stability risk”.
The possibility of a lower OCR, potentially leading to lower floating home loan rates, was left out there for further assessment over the coming year.
Reversing the last of the 4 OCR raises in 2014 the Reserve Bank has cut the Official Cash Rate to 2.50% this morning.
Citing low inflation and a hope that the new Tax and LVR measures on property are easing Auckland house price increases the Bank remains ready to cut again if the data warrants it.
ANZ was the first to pass on the 0.25% in full on its Revolving Credit and Floating interest rates.
The Reserve Bank kicked for touch today and left the Official Cash Rate (OCR) unchanged at 2.75 percent.
Talking to a couple of Real Estate Agents this week the numbers through open homes have fallen significantly this month. Perhaps we are all taking afternoon naps on account of the early starts watching the Rugby. An IRD Number and a NZ Bank Account may have something to do with it also………
GO THE AB’s