Category Archives: Official Cash Rate

Official Cash Rate decisions made by the Reserve Bank of NZ

Official Cash Rate (OCR) unchanged at 2.75 percent.

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………


Cash Rate Cut

Making it 3 in a row the Reserve Bank cut the Official Cash Rate (OCR) today by 25 basis points to 2.75 percent.

Auckland houses prices got their regular mention with “”House prices in Auckland continue to increase rapidly and are becoming more unsustainable””.

Despite that statement a strong bias towards further cuts was provided. “At this stage, some further easing in the OCR seems likely. This will depend on the emerging flow of economic data.””

Fixed interest rates continue to tumble with ASB out earlier in the week with 6 months fixed thru to 4 years fixed all under 5%.

Official Cash Rate Cut

The Reserve Bank today reduced the Official Cash Rate (OCR) by 25 basis points to 3.0 percent.

Variable interest rates should reduce over the next few days.

A further cut is on the horizon judging from todays statement.

“”A reduction in the OCR is warranted by the softening in the economic outlook and low inflation. At this point, some further easing seems likely.””

OCR Trimmed to 3.25%

The OCR got a 0.25% trim this morning to 3.25% in an attempt to give inflation, which is near enough at zero, a nudge along and to give the NZ$ a helping hand downwards.  The Reserve Bank included a bias towards further cuts going forward.

$154,000 secured a 2 bedroom in the Columbia building yesterday. Located in Grafton the fully managed student accommodation, not reknowned for its investment return, provides for net annual rental income of $6,000. Purchased sight unseen evidently.

Columbia - Copy


OCR unchanged at 3.5 percent

The Reserve Bank today left the Official Cash Rate unchanged at 3.5 percent.

The Governor noted..”it is prudent to undertake a period of monitoring and assessment before considering further policy adjustment. Nevertheless, we expect some further policy tightening will be necessary to keep future average inflation near the 2 percent target mid-point and ensure that the economic expansion can be sustained.”

Indicating that they may well be on hold for a while yet but with a bias to the upside depending on how the data falls.

At Auction yesterday a tussle between 3 bidders over a 5 bedroom home @ 4 Pamela Place, New Lynn saw it sold under the hammer @ $816,000.

Cash Rate Held

The Reserve Bank today left the Official Cash Rate unchanged at 3.5 percent as was widely expected.  The Governor noted inflation remained modest @ 1 percent in the year to September and noted that a period of assessment remained appropriate before considering further OCR adjustment. Floating interest rates could therefore be on hold for some time.

In other news ASB has introduced the acceptance of Desktop Valuations. Costing less than a full Registered Valuation and expected to be delivered in 1-2 days it has the potential to speed up the purchasing and financing process.

Cash Rate Kept On Hold

The Reserve Bank today left the Official Cash Rate unchanged at 3.5 percent. The statement noted that the rate of increase in house prices had continued to ease despite the recent increases in immigration numbers.

The Bank confirmed it was intending to wait before implementing any further OCR rises to assess the impact of the 4 previous hikes.

@ Commercial Property Auctions yesterday a 2 level barn like structure in Ponsonby without parking, or vehicle access, sold for $830,000.