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%.
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.””
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.
No Change in the OCR this morning.
Boring..? Well, be glad we aren’t in Brazil. Their Central Bank lifted the Benchmark Rate by 0.50% to 13.25% yesterday.
The Official Cash Rate was held at 3.50% this morning. Future moves, either up or down, are data dependant according to todays statement.
In other news SBS has announced a market leading 5 year fixed rate of 4.99%.
Soft inflation data out today with the annual CPI coming in @ just 0.8% for 2014. The December quarter number was -0.2%. With inflation running at nil the likelyhood of OCR raises in the near future diminishes significantly. As a result floating interest rates could well remain lower for longer.
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.
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.
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.
The Reserve Bank today increased the Official Cash Rate (OCR) by 25 basis points to 3.5 percent.
The statement issued by Reserve Bank Governor Graeme Wheeler noted “strong net immigration is adding to housing and household demand, although house price inflation has moderated further since the June statement.”
He also suggested “It is prudent that there now be a period of assessment before interest rates adjust further towards a more-neutral level.” So a possible pause in further OCR movements for a while. What will be interesting to see is whether or not fixed interest rate markets re-price their current future fixed rate expectations…..
In response ANZ has announced a forthcoming raise in variable interest rates but kept fixed interest rates on hold.