Mortgages

OCR 22-09-2012

Reserve Bank Governor Graeme Wheeler today left the Official Cash Rate unchanged at 2.00 percent.
 
This was expected by the market with the majority forecasting a reduction in the November announcement when the Governor has access to more information to assist with making an informed decision.

He cited his main reasons for holding the rate today as:

OCR at new record low of 2.00%

Reserve Bank Governor Graeme Wheeler today reduced the Official Cash Rate by 25bps to 2.00 percent.
 
With the dollar jumping (rather than falling) after the announcement, it is clear the market expected a surprise 50bp drop.

He cited his main reasons as:

  • Global growth is below trend.
  • Long-term interest rates are at record lows.
  • The high exchange rate is adding further pressure to the export and import-competing sectors. 
  • A decline in the exchange rate is needed.

On the near future:

Average Auckland House Price Sept 2015 is...

QV says the average value of homes in Auckland is now $896,676, but there are signs the market is slowing

The national average dwelling value increased to $542,277 for the three months to September, up 4.2% over three months and up 12.6% for the year, according to Quotable Value (QV).

In Auckland the average dwelling value continues to head towards the million dollar mark, coming in at $896,676 for the three months to September, up 22.6% compared with year earlier, although QV said buyer demand was slowing in the region.