Reserve Bank gets the Jack Out..OCR up to 4.25%

Up 75 basis points today and evidently a full 1% raise was considered.

The Reserve Banks view is..

“”In New Zealand, household spending remains resilient, especially considering the rise in debt servicing costs, the fall in house prices, and low levels of consumer confidence. Employment levels are high, and income growth and household savings are supporting spending. The rebound in tourism is also supporting domestic demand.””

Signs point to further rate increases to come..