Interest Rate Rises to Slow Down

The Reserve Bank of New Zealand (RBNZ) has held the Official Cash Rate at 3.5 percent, also reducing the peak rate forecast by 50 basis points to 4.7 percent by 2017.

While interest rate increases are undeniably part of New Zealand’s future, the September Quarter Monetary Policy Statement (MPS) indicates fewer and more spread out hikes than previously forecast as the RBNZ undertakes “a period of monitoring and assessment.”

After four rate hikes this year and the implementation of new high LVR speed limits, the Reserve Bank has decided to weigh up the effects of previous rate rises before administering more.

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