THE MARKET IN NZ

The Reserve Bank has left the Official Cash Rate (OCR) on hold at 2.5%. The decision to leave the OCR on hold was in line with market expectations.

The Reserve Bank has indicated that if the New Zealand dollar remains elevated without other economic settings changing, then it would need to reassess its previous assumptions about where interest rates were headed.

Most economists are picking the first move up in the OCR from its current level will be no earlier than December this year.

This is good news for the floating mortgage rates which are now more attractive than fixed rates after the Reserve Bank’s dovish comments in its monetary policy outlook yesterday, (Westpac Chief Economist Dominick Stevens).



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