OCR Outlook Positive
It is widely speculated amongst chief economists that the Reserve Bank of New Zealand will keep the Official Cash Rate (OCR) from 2.5 per cent when it meets next month at its September board meeting.
Economic data in New Zealand will be monitored, closely as the bank determines its moves over the last part of the year.
New Zealand home owners can expect some rate reprieve with a September increase now ruled out by New Zealand’s chief economists.
However, the timing and extent of OCR increases over the coming months will depend on evidence of actual inflation and domestic cost pressures as well as what is happening in the global economy.
The Reserve Bank’s hold will see an increase in borrowers looking at floating rates as opposed to fixed rates. If you are fixing, speak to me today about shorter terms that may be more cost-effective, depending on your financial situation.Tags: inflation, mortgage finance, OCR, RBNZ, Reserve Bank of New Zealand (RBNZ)