The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.5 percent.
In a further direct reference to Auckland’s current housing market he said..“In the meantime high house price inflation persists, especially in Auckland. As has been noted for some time, the Reserve Bank does not want continued high house price inflation to compromise financial or price stability. Recently introduced restrictions on high loan-to-value mortgage lending are expected to help slow house price inflation and the Bank will continue to monitor the situation closely.”
And…“Although we expect to keep the OCR unchanged in 2013, OCR increases will likely be required next year.” A nod to increasing floating interest rates..
Go Sonny Bill and The Kiwis!! 🙂