OCR to stay higher for longer and falling house price deepen - Treasury
In December it forecast prices would eventually reach their pandemic peak by 2027 but now doesn’t see any end to the crisis, forecasting the Reserve Bank's official cash rate will stay higher for longer and not below 5% before the end of 2024.
The Government will be pinning its hopes on the cost-of-living spending announcements blunting the effects of higher interest rates and inflation.
The ‘no frills’ Budget package threatens to undermine the Reserve Bank’s efforts to tackle inflation.
It has $20 billion of capital allowance over the next four years, an increase of $8.5 billion more than was planned at the end of last year, to cover maturing bonds and buyback of the bonds acquired by the Reserve Bank during the pandemic.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[Weekly Wrap] KiwiSaver in play; but outcome unclear](https://goodreturns.publit.io/file/c_fill,w_300,h_200/0ad582e4-c9a3-4692-bbe2-62d928f77fd2.jpg)
