Reserve Bank of New Zealand Cuts OCR
Many economists are now predicting only one further rate rise in the end of the last quarter of the year.
The RBNZ estimated rebuilding costs in Christchurch of NZ$15 billion and forecast a 0.6% fall in GDP in the first quarter of this year because of the earthquake.
What we would really like to see is the RBNZ stay its hand for the remainder of 2011 to allow consumer confidence to return and to take undue pressure off household budgets.
Mortgage holders, particularly those having to contend with repairing flood affected homes just want an extended period of stability.
The RBNZ could do a lot more to restore consumer confidence by remaining on the sidelines for the rest of the year.
Tags: Christchurch earthquake, home loans, Mortgage broker, OCR, official cash rate, Reserve Bank of New Zealand