Official Cash Rate Unchanged

As expected the Reserve Bank left the official cash rate unchanged this morning.  As a result we would expect little movement in home loan interest rates.

The Governor commented..

“Domestically, recent data has turned out weaker than projected. Continued household caution has seen consumer spending and housing market activity remain muted, and many firms have become less optimistic about their future prospects. However, continued high export prices, along with reconstruction and repairs in Canterbury, will support activity over the coming year.”

We have seen the slower housing market activity 1st hand, at the last couple of auctions attended recently the auctioneer was practically on her knee’s begging the audience to bid.

The word from a long standing real estate agent yesterday was that the only sellers currently are those going through a relationship breakup or those facing severe financial difficulties.

Enjoy the rest of your week and go the Kiwi’s.