Official cash rate down to 5.25%

Next reduction some way off The Reserve Bank cut the official cash rate by 25 basis points to 5.25% today. “The evidence has become clearer that growth is beginning to slow following a period of strength. This slowdown mainly reflects the rapid appreciation of the exchange rate over the past 18 months, leaving the export […]

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Reserve Bank cuts rate to meet slowdown

Official cash rate cut to 5.5% The Reserve Bank cut the official cash rate by 0.25% to 5.5% today because of the softening economy. Bank governor Alan Bollard said in January there might be scope for a cut if the exchange rate held up and if evidence pointed to reduced pressure on resources & medium-term […]

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Reserve Bank raises cash rate to 5.5%

Acting governor forecasts more rises The Reserve Bank increased the official cash rate from 5.25% to 5.5% today and expects more rises to come over the next year. The bank’s acting governor, Rod Carr, said: “Demand conditions no longer warrant the degree of interest rate stimulus that seemed necessary late last year. The economy’s ability […]

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Reserve Bank lifts cash rate to 5.75%

Carr says further rises less likely The Reserve Bank increased the official cash rate today, from 5.5% to 5.75%. But the bank’s acting governor, Rod Carr, also signalled that further increases were less likely than the bank indicated in its May monetary policy statement. This is how Dr Carr explained it: “Adjusting interest rates so […]

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ASB economist reflects on interest rate anticipation

Linking to official cash rate changes dynamics ASB Bank chief economist Anthony Byett raised some intriguing interest-rate questions in his Economic Note yesterday, in response to the no-raise of the US & the ¼% of New Zealand. In his commentary, he discussed the degree of anticipation of rate changes filtering through to the business & […]

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Reserve Bank governor worries about housing market

A warning to the unsophisticated – and warning that bank may try to curtail speculative rise The governor of the Reserve Bank, Dr Alan Bollard, raised concerns about the housing market when he addressed the Property Council on Tuesday. “Residential investment is expanding the nation’s housing stock rapidly, yet demand continues to outstrip supply. We […]

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Housing pushes CPI up

Inflation rate 1.6%, housing up 8.5% in year The consumers price index increased by 0.7% in the December quarter, taking the annual inflation rate to 1.6%, pushed up by housing costs. Statistics NZ said prices in the housing group rose 2.2% in the December quarter. Electricity and international air travel also increased while petrol prices […]

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Inflation hits 4%

Q4 rise 1.2%, housing up 0.9% Inflation hit an annual rate of 4% in the December quarter, the first time it’s been up there since the second quarter of 1995, when interest rate changes were included in the consumer price index. Interest movements have been excluded from the CPI since the June 1999 quarter. Statistics […]

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Homes up 5.8% for population up 3%

Census shows just under 3.8 million people, and Waitakere becomes fifth biggest city New Zealand’s population rose 3% (111,108 people, or 22,200/year) to 3.8 million in the five years to census night on 6 March, Statistics NZ said. That followed a 7.2% rise, of 246,597 people (49,300/year), in the previous five years. The provisional census […]

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