Up another 0.50% for the OCR

The Reserve Bank kept to its committment to raise interest rates in an attempt to reduce inflation by raising the OCR 0.50% today.

The recent weather events may ultimately keep the pressure on for further interest rate rises, somewhat perversely.

This is because the re-build phase will lead to increased build activity in an economy already faced with supply issues.

The Reserve Bank noted the predictable “go slow” by the main Banks on raising their deposit interest rates while immediately raising the borrowing interest rates in response to OCR moves which translates for you and i as more profit for the Banks.

All the best to the flood affected.