The Reserve Bank surprised markets yesterday by suddenly introducing the possibility of rate cuts, announcing it’s next interest rate move could be either up or down.
As expected, the bank kept its official cash rate at 3.5 per cent at yesterday’s review but the real news for the market was the bank’s comment that it expected to keep the rate on hold for some time.
The latest round of mortgage wars is heating up, with the ASB, ANZ and Co-operative Bank announcing cuts to their interest rates in the fight to attract customers as we move into what is traditionally the peak time in house buying. The cuts reflect competition in the market, and that wholesale interest rates have also fallen.
House values in Auckland rose at almost twice the rate of the rest of New Zealand and are now 39.4% higher than the previous peak in 2007.
The amount of empty office accommodation within Auckland’s CBD has fallen for the fifth consecutive year, reflecting the city’s strong economic performance.
Kiwibank has opened what is expected to be a bidding contest for mortgage business with a cut to its two-year fixed interest rate.
NZPIF requested a meeting late last year to clarify and discuss reports that the Reserve Bank Governor wanted to limit the number of rentals that investors could own.
