INTEREST RATES ON HOLD, MAY EVEN DROP
There’s no doubt about it, the Reserve Bank is holding rates and has strongly indicated it will do so well into the year. Additionally there are many soothsayers predicting that Dr Bolllard will in fact drop the OCR in a week or so’s time in an endeavour to ‘kick start’ the stalling economy.
The added and huge pressure the economy now comes under as a result of the Christchurch quake will surely add to that likelihood.
We wonder though, whether the drop in the NZ dollar value since the quake might see Bollard sit for a time and review in April. The inflationary result of the drop in the dollar against Australian and Asian currencies will surely be a concern although exporters will see it as a saviour, one they have been asking the Government to deliver for some time.
Filed under: REAL ESTATE | Tagged: Real Estate