On 6 October, the Reserve Bank of New Zealand (RBNZ) released its Monetary Policy Review, announcing an increase in the Official Cash Rate (OCR) from 0.25% to 0.5%. All content copyright NBR. The opinions expressed in this article should not be taken as financial advice, or a recommendation of any financial product. We think that's fair, because your organisation is benefiting from using our news resources. ads. The key thing for borrowers is dont panic, Pope said. From 2021, the Bank is adopting a Our daily newsletter is FREE and keeps you up to date with the world of mortgage. "On the one hand, the path ahead for the economy is looking anything but smooth, with house prices falling and consumer confidence pummelled as household budgets are squeezed. Do not reproduce in any form without permission, even if you have a paid subscription. Please appreciate that there may be other options available to you than the products, providers or services covered by our service. Moreover, forward economic indicators are weak. The OCR is set by the Reserve Bank of New Zealand whose aim is to keep prices stable. Inflation expectations are far too high. That decision wont be helped by the unusually light data flow between reviews," the banks says. When the RBNZ gets closer to actually changing the OCR setting, the upward pressure will come on the shorter terms and floating rates too.. Your rate wont rise as you locked it in, so you can relax a little. There are fairly clearly signs that quarterly core inflation peaked a year ago and has since been falling. Next OCR announcement OCR dates 2023 Past OCR rates Exchange rates and Trade Weighted Index (B1) Proposed changes to LVR Wholesale interest rates . The RBNZ's next OCR announcement, and the last one for the year, is coming up on the 23 rd November. ", 'Not going away': Kiwis need tighter budgets as retailers plan price increases - economist, Copyright 2023 Discovery NZ Limited (Warner Bros. If youve taken the time to make sure you are in the right fund or investment to meet your goals, you shouldnt need to change your strategy. It's predicting a 50 basis point increase, which would be the largest increase to the OCR since May 2000. With earnings season in full swing, it might be easy to forget the Reserve Bankis also scheduled to make the first official cash rate (OCR) announcement of the new year this week. Financial Stability See what promotions banks are offering. In such an event, the markets and the media would be given as much notice as possible. Bond traders are betting against the Reserve Bank, NZD shows notable underperformance, weaker on all the crosses, RBNZ's shock 50bps hike has back-fired; NZ rates mainly lower as market prices in eventual policy reversal, Of Interest Podcast: Profits not responsible for inflation, NZIER economist says, BNZ's Toplis: There was no need for the RBNZ to 'go like a bull at a gate', USD well supported on safe haven flows; NZD/USD fully reverses. Reserve Bank to deliver OCR raise to 3 percent in continued - RNZ In fact, theyve been the lowest we have on our records going back to the 1960s. live-stream 14 July - OCR Remaining release The Reserve Bank reserves the right to make changes to this schedule, if required. On 6 October, the Reserve Bank of New Zealand (RBNZ) released its Monetary Policy Review, announcing an increase in the Official Cash Rate (OCR) from 0.25% to 0.5%. It also published a new OCR track which projects the OCR could rise from mid-2022, with gradual rises to 1.75% in 2024. and future prospects. Because your rate is fixed for an agreed period, a decision by the RBNZ to hold wont have as much of an effect on you depending on how long you still have to go in your fixed term. OCR currently at 4.75% Next RBNZ OCR announcement: 05 April 2023 We asked our panel of experts to have their say on New Zealand's property market, the possible extension of the travel bubble, and more. John Bolton (pictured above left), founder of Squirrel Mortgages, said in his view a 75bps increase was too much. Explaining its decision for moving the OCR to 2.5% the Reserve Bank said at the time that global inflation has been largely driven by supply disruptions due to Covid-19 and the Russian invasion of Ukraine, combined with an overall increase in spending worldwide. Central bank will make OCR announcement this week. San Francisco-based First Republic is the third midsize bank to fail in two months. We may also receive compensation if you click on certain links posted on our site. ASB is forecasting three rises to the official cash rate (OCR) this year, saying it's time for rates to start moving. Still, there are signs of a tentative shift in tone," the group's economists said. Second-tier US economic data paint softer economic picture and lower oil prices support the move, Food prices were up 12.1% in the year to March 2023 - which is the highest annual rate of increase seen since 1989; Kiwis 'crushed at the checkout', National's Willis says, US core retail sales not as weak as expected; 1 yr-ahead inflation expectations surge to 4.6%; Fed's Waller urges more tightening. Kiwi homeowners are in for little relief with yet another rate hike expected this month, according to this months Finder RBNZ Official Cash Rate Survey. Could, or should, the RBNZ cut the interest rate it pays on banks' settlement cash accounts in order to reduce the Government's interest bill? Reserve Bank lifts official cash rate to 3.5% - 1news.co.nz Please complete the form below and click on SIGN UP to receive daily e-newsletters from. That's far beyond the Reserve Bank's objective of keeping inflation between 1 and 3 percent on average while also supporting maximum sustainable employment. The central bank's latest announcement was notable for its lack of changes, but the RBNZ dropped wording around being "willing to cut" the official cash rate further. OCR decision: Reserve Bank raises official cash rate by 50 - Newshub It also published a new OCR track which projects the OCR could rise from mid-2022, with gradual rises to 1.75% in 2024. ANZ is forecasting it could reach 7.4 percent in the second quarter of the year. A move by the Reserve Bank of New Zealand to raise the official cash rate by 0.75% would be a step too far, according to some mortgage advisers. US Treasury yields fall post CPI but then reverses much of that price action, NZ's largest bank raises fixed and floating home loan rates, savings account rates, and term deposit rates in a broad response to the recent RBNZ OCR rises, Mortgage rates were unmoved by the RBNZs big hike as traders bet any increase now will be matched with a cut later, US Treasury yields push higher, ahead of key CPI data tonight.
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