Mortgage

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:

Deadliest Occupation in NZ is....

Farming!

According to The Independent, Farming classified as 'most deadly occupation' in New Zealand

Quad bike and tractor accidents have become the most common causes of death on farms in New Zealand where farming is classified as "the most deadly" occupation, claiming, on average, a life every three weeks throughout the year.

In addition the statistics show that a farmer or an agricultural worker is injured every half an hour.

Investment Property: Yield or Capital Gain?

Our partners over at Westpac have put together a handy little interactive tool they are calling the "Westpac Property Investor Report", but we think that doesn't do it justice.

Sure it's a report, but it has a cool little interactive tool that you can play with and see how much rent you should be charging and how much your property's value is increasing by each year.

This will be useful if you have an investment property and really useful if you are looking at buying one.