Propertyscouts Auckland

OCR remains unchanged but what is ahead? - 29th Jun 2018

OCR remains unchanged but what is ahead? The Reserve Bank has left the OCR unchanged at 1.75% and reaffirmed its cautious, neutral stance. 

ANZ senior economist Liz Kendall says the statement was more dovish at the margin, with the OCR on hold “for now”, rather than “for some time to come”, and a subtle change of wording in its forward guidance phrase. “We need to be careful to not overplay this, but it does suggest a greater willingness to move the OCR lower if necessary. But the key message is this: interest rates will remain low for some time yet.”

With inflation only likely to rise gradually, ANZ thinks the Reserve Bank will maintain a cautious monetary policy strategy until they see inflation rise in a consistent and sustained way, she says. “We are picking that the OCR will eventually rise, with a hike for November 2019, but a lot can happen between now and then."

Other Bank Chief Economists share a similar view.  To read about the Reserve Bank's OCR announcement in full, please follow the link here

Shared with you by our Rental Property Management company PropertyScouts Auckland for information purposes via ANZLive.

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