Official Cash Rate again left unchanged

The Reserve Bank today left the Official Cash Rate unchanged at 2.50%. The Governor reiterated earlier comments around a desire to keep it at or below this level through to the latter part of 2010. He noted a pickup in the housing market over recent months evidence of which we have seen ourselves.

At auction yesterday we witnessed a freehold bare section of 450 sqm in Curran St, Herne Bay, Auckland, sell under the hammer for $850,000.!

In interest rate news the ASB and Sovereign moved last week to cut their home loan floating interest rate to 5.75% while at the same time raising all fixed interest rates of 1 year duration and longer. Their 5 year fixed interest rate now sits at a reasonably ugly 8.60%.