OCR on Hold, For Now
The Reserve Bank (RBNZ) left the official cash (OCR) rate on hold at 2.5 per cent at its April meeting, giving home owners some much needed reprieve.
The outlook for core inflation and the ongoing economic impact of the earthquakes mean there’s no need to raise interest rates any time soon.
In its financial stability report, Governor Alan Bollard indicated that the performance of the New Zealand economy remains uncertain, and that the banks’ readiness to support recovery in Christchurch was encouraging.
“Efforts by households and businesses to cut or contain debt are reducing New Zealand’s overall domestic demand,” Dr Bollard Said.
Increased competition by the big banks is positive with current floating rates on mortgages starting at around 5.74 per cent p.a., with two-year fixed rates sitting at around 6.49 per cent p.a.*
Mortgage options will vary between borrowers so it’s important to talk to your local Loan Market mortgage broker for a free assessment of your specific situation.
*Rates current at time of writing, 12th May 2011Tags: Alan Bollard, home loans, Interest Rates, Loan Market, OCR, Reserve Bank of New Zealand