colinrealestate

The outlook by a leading economist is that there will be no change in interest rates until 2014. What influences our interest rates is a list too long to print, however, some of the key influencing factors are: how high the NZD goes, will it go higher?

Other factors influencing interest rates are the uncertainty whether the euro will hold together; America tightening fiscal policies, currently proposed that it will tighten GDP by 4% which will significantly slow their economic recovery. Other influences are our major trading partners’ economies; with the potential slowdown in China’s economic growth and Australian economic outlook appearing to flatten. These factors contributed to the Reserve Bank reviewing the official cash rate in September and it remains unchanged at 2.5%.

Filed under: REAL ESTATE | Tagged: Real Estate