OCR Cranks to 3%

The OCR was cranked up another 0.50% to 3% yesterday as the Reserve Bank attempts to get the brakes on inflation. The Bank believes the housing market is still overvalued with..

“”House prices have steadily dropped from high levels since November last year, and are expected to keep falling over the coming year towards more sustainable levels.””

There will be a near immediate hike in Bank Floating interest rates and further OCR hikes in October and November look odds on.