OCR

2024 - 7 - 10

Kiwi Mortgage Holders on Edge as OCR Stays Unchanged

inflation - interest rates - OCR - Reserve Bank of New Zealand

Find out how the Reserve Bank's decision is impacting mortgage holders in New Zealand!

The Reserve Bank of New Zealand has maintained the Official Cash Rate (OCR) at 5.5% for the eighth consecutive meeting, citing a slowdown in the economy and easing labor market pressures. Despite this, pockets of domestic inflation are still persistent, leading to a 'dovish' tone in the markets. Mortgage holders are eagerly anticipating a possible cut in the OCR as they continue to bet on interest rates falling sooner than projected by the RBNZ.

The decision to hold the OCR at 5.5% once again was widely expected, with economists predicting the move as inflation trends closer to the target range set by the central bank. However, there are growing calls for rate cuts amidst concerns that the current monetary policy stance may be more detrimental to the economy than beneficial. This conflicting sentiment highlights the uncertainty surrounding future adjustments to the OCR.

Amidst the speculation, borrowers are opting for shorter-rate mortgages, reflecting their anticipation of rate cuts in the near future. This trend was particularly evident in May when the number of borrowers taking out short-term mortgages surged. The market's response to the OCR decision showcases the delicate balance between economic growth and inflation control in New Zealand.

In conclusion, the expectation of rate cuts in November has led to a record high in short-rate borrowing, emphasizing the impact of monetary policy decisions on consumer behavior. The Reserve Bank's careful approach to managing inflation while supporting economic growth reflects the intricacies of navigating the financial landscape in uncertain times.

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Image courtesy of "RNZ"

OCR remains unchanged at 5.5% for eighth consecutive meeting (RNZ)

The central bank said the economy has slowed, and labour market pressures are easing, but pockets of domestic inflation persisted. "Restrictive monetary policy ...

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Image courtesy of "New Zealand Herald"

Reserve Bank keeps OCR on hold but 'dovish' tone has markets ... (New Zealand Herald)

The Reserve Bank has kept the Official Cash Rate at 5.5% - the eighth consecutive time that it has kept it on hold. But, the statement from the Monetary...

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Image courtesy of "New Zealand Herald"

Mortgage holders bet on the Reserve Bank cutting the OCR sooner ... (New Zealand Herald)

A decent portion of mortgage holders are continuing to bet on interest rates falling this year - sooner than projected by the Reserve Bank (RBNZ). In May,.

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Image courtesy of "Newstalk ZB"

OCR: Reserve Bank expected to make a "short and sweet ... (Newstalk ZB)

Westpac Chief Economist Kelly Eckhold told Ryan Bridge that the Reserve Bank said in May that interest rates would have to remain restrictive for a ...

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Image courtesy of "1 News"

Reserve Bank holds OCR at 5.5% once again (1 News)

As inflation continues to track down toward the target range, the move to hold the OCR at its current setting was widely predicted by economists.

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Image courtesy of "Interest.co.nz"

RBNZ holds OCR as calls for cuts grow (Interest.co.nz)

The Reserve Bank of New Zealand has held the Official Cash Rate at 5.50% but noted this policy may be hurting the economy more than expected.

BREAKING: OCR remains at 5.50% - Inflation Approaching Target ... (goodreturns.co.nz)

“They were great contracts and compared to death by accident only, they are way more reasonable. Approximately only 1,200...” 7 hours ago by Backstage; Climate ...

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Image courtesy of "FXStreet"

NZD/USD drops to near 0.6100 as RBNZ opts to keep OCR ... (FXStreet)

NZD/USD depreciates as the RBNZ keeps the Official Cash Rate (OCR) unchanged at 5.50% in its July meeting. The New Zealand Dollar struggles after the ...

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Image courtesy of "goodreturns.co.nz"

Shorter rate borrowing as belief rate cuts on a November horizon ... (goodreturns.co.nz)

Borrowers taking out mortgages for just six months rose to a new high in May, in anticipation of interest rate cuts soon.

Business.Scoop » OCR 5.50% – Inflation Approaching Target Range (Business)

Press Release – The Reserve Bank of New Zealand. The decline in inflation reflects receding domestic pricing pressures, as well as lower inflation for goods ...

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BREAKING: OCR 5.50% - Inflation Approaching Target Range ... (goodreturns.co.nz)

Restrictive monetary policy has significantly reduced consumer price inflation, with the Committee expecting headline inflation to return to within the 1 to ...

Interest Rates Freeze Shows Need To Take An Axe To Government ... (Scoop.co.nz)

The Government needs to get serious about slashing wasteful spending, but so far it's done anything but. More spending, a bigger deficit and heaps more debt ...

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Image courtesy of "goodreturns.co.nz"

Expectation of Nov rate cuts prompts record short rate borrowing ... (goodreturns.co.nz)

Borrowers taking out mortgages for six months rose to a new high in May, in anticipation of interest rate cuts soon.

Community Scoop » Interest Rates Freeze Shows Need To Take An ... (Community Scoop)

The Government needs to get serious about slashing wasteful spending, but so far its done anything but. More spending, a bigger deficit and heaps more debt were ...

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Image courtesy of "New Zealand Herald"

Investors respond positively as Reserve Bank hints at loosening in ... (New Zealand Herald)

Reserve Bank governor Adrian Orr produced his latest one-liner: “Don't fret inflation, it's going away.” The New Zealand sharemarket certainly didn't fret.

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Image courtesy of "The National Business Review"

Dovish hold: OCR remains at 5.5% despite economic slump (The National Business Review)

The RBNZ remains wary of ongoing domestic inflation pressures, including upcoming tax cuts, but still expects headline inflation to return to the key target ...

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Image courtesy of "Otago Daily Times"

OCR remains unchanged at 5.5% (Otago Daily Times)

New Zealand's central bank said the economy has slowed and labour market pressures are easing but pockets of domestic inflation persisted. "Restrictive monetary ...

Brandeis Center sues OCR (Inside Higher Ed)

The Louis D. Brandeis Center for Human Rights Under Law and Jewish Americans for Fairness in Education are suing the Education Department's Office for Civil ...

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Image courtesy of "New Zealand Herald"

Official Cash Rate steady, Reserve Bank softens stance as stats ... (New Zealand Herald)

The Reserve Bank of New Zealand has held firm, leaving the Official Cash Rate (OCR) unchanged at 5.5% for the eighth consecutive time.

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Image courtesy of "New Zealand Herald"

OCR review: Will the Reserve Bank's dovish pivot see mortgage and ... (New Zealand Herald)

ANALYSIS Trying to make financial decisions in the current environment is a tough, if not anxiety-inducing, task. In late-May, the Reserve Bank (RBNZ) said.

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Image courtesy of "CoreLogic"

Tiny hints of easier monetary policy down the track? (CoreLogic)

Chief Property Economist Kelvin Davidson unpacks the July cash rate decision and what it means for the housing market.

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Image courtesy of "Newstalk ZB"

Reserve Bank left "all their options open" regarding rate cuts (Newstalk ZB)

But the Reserve Bank's tone has softened, and they're hinting that inflation will return to its 1-3% target by the year's end. ANZ Chief Economist Sharon ...

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