Interest Rates: RBNZ OCR
2pm Wed 28 Feb, the RBNZ will unveil its eagerly awaited OCR decision, marking the first such announcement since 29 Nov 2023. What can we anticipate?
The RBNZ has adopted a hawkish stance, signaling potential rate hikes amidst concerns over domestic inflation - a sentiment echoed by ANZ's Chief Economist, NZ's largest bank.
Contrastingly, the majority of economists have taken a dovish position, cautioning against rate increases. They underscore the impacts of the successive rate hikes (+4.25%) over the past 2.5yrs and the softening underlying GDP, despite robust migration figures.
Adding to the complexity, our Prime Minister, Christopher Luxon, has characterized the nation's current state as "fragile."
Market sentiment have been oscillating. Wholesale market funding rates experienced a -1.16% decline from 4 Oct to 29 Dec 2023, (refer to 2yr swap rate graphic). However, since then, they have rebounded, increasing +0.57%. Concurrently, retail mortgage rates have seen some reduction but not to the same extent.
Market dynamics are influenced by a plethora of factors, including local and international data releases like employment figures, inflation rates, and GDP growth. Moreover, commentary from influential figures - sometimes referred to as "jawboning" - can significantly sway market sentiment.
Ultimately, the RBNZ holds the reins, but it's far from a predetermined outcome.
If you are seeking independent guidance on your refix, restructuring, or refinancing options, reach out to adviceHQ today.
#advicehq #RBNZ #ocr #interestrates #mortgagerates
Poll: Should we be giving the green light to new mining projects? 💰🌲
The Environmental Protection Authority announced this week that a proposed mine in Central Otago (near Cromwell) is about to enter its fast-track assessment process. A final decision could come within six months, and if it’s approved, construction might start as early as mid-2026.
We want to know: Should mining projects like this move ahead?
Keen to dig deeper? Mike White has the scoop.
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53.4% Yes
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46.6% No
Aucklanders, we want to know: How are you feeling about the current property market?
New Zealand homeowners are now more likely to sell at a loss than at any time since 2013, and if you’re in Auckland or Wellington, the odds are even higher.
But there is a silver lining: buyers are still in a strong position when it comes to negotiating prices.
So we’re curious…
How are you feeling about the current property market?
If you’re keen to dive into the details, Deborah Morris breaks down all the latest insights.
Auckland, why are we so excited about a new store? 🚗🛒
I think we’ve all seen the traffic notices and headlines about the new IKEA by now!
So here’s the question: why do we get so excited when a new store opens? Convenience? Curiosity? A reason for a weekend outing? We’d love to hear your thoughts!
Keen for an update? The Post has you covered
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