OCR rise likely to raise mortgage rates
Against expectations, Reserve Bank governor Alan Bollard raised his official cash rate (OCR) from 5% to 5.25%, citing stronger than expected household spending and activity in the construction and housing market.
Tuesday, February 3rd 2004, 9:57PM
by The Landlord
Bank of New Zealand economists had seen today’s decision as a close call. Senior markets economist Craig Ebert says the central bank’s focus is very much on the economy.
"It’s so strong and operating pretty much above its long-term sustainable level," Ebert says, noting that unemployment is very low and tracking lower and that the housing market is "going ballistic."
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