[UPDATED] Perky housing market may force rate hike
Tuesday, January 24th 2012, 6:00AM
UPDATE: SBS has cut its fixed rates today
Westpac suggests the Reserve Bank has probably shifted the projected start date for OCR hikes out, but the "perky" housing market may alter things.
It says the central bank has probably pushed the start date for OCR hikes out from June to maybe September.
"Market pricing suggests the OCR will remain on hold until mid-2013, but we would not go that far due to the state of the housing market."
"It seems clear that low interest rates have imparted a significant stimulus to the housing market. If prices continue to scoot higher this year, the Reserve Bank may well feel entitled to nudge the OCR gently off its all-time lows."
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