OCR unchanged at 2.5 percent at October Meeting

In line with the last OCR meeting in mid September the Reserve Bank has left the OCR unchanged at 2.5 percent this morning.

The Governor commented..

“Given the ongoing global economic and financial risks, it remains prudent to continue to keep the OCR on hold at 2.5 percent for now. However, if global developments have only a mild impact on the New Zealand economy, it is likely that gradually increasing pressure on domestic resources will require future OCR increases.”

In other news ANZ Bank used the cover of the recent credit rating downgrade and the build up to the Rugby World Cup Final to last week announce an increase in the interest rate on their revolving credit home loans.  Applying from the 1st of November this floating rate goes from 5.65% to 5.85%.  In the notification letter to customers no reason was given. It opened with the rather non explanatory sentence “I’m writing to let you know about a change to the interest you pay on your…”