“The Reserve Bank stuck to the script and left the official cash rate unchanged at 5.5 percent, confirming an end to its 21-month tightening campaign”…
“It said inflation, currently at an annual rate of 6.7 percent, was expected to keep falling as would inflation expectations, with a slowing global economy, an easing in supply chain disruptions, cooler labour and housing markets”…
“It estimated that inflation would be back in the target band in the second half of 2024”…
“We don’t expect OCR cuts until May next year, give or take”
This was the expected outcome, last time to said they had “done enough” WRT rate rises.
5.5% for a year will hurt just a little, but that should be eased a little by inflation pulling back. And way less than inflation continuing to escalate without income raised to keep up.
Edit: got to check the autocorrect more closely when posting from my phone.
As expected, but OCR at 5.5 for a while is going to hurt.
Good Point - heres the Trend since 2000 https://www.rbnz.govt.nz/monetary-policy/monetary-policy-decisions
This just raises more questions!
People talk about the OCR like it’s how things work but your link says the OCR was only introduced in 1999. How did things work prior to that? Because I know that people who have bewn around longer than me think of 7% mortgage interest rates as being closer to normal than what we have had from say 10 years ago until recently.
