There as been no change in the OCR however another cut is expected in 2015 and there maybe a further cut in 2016. Future movement in the OCR is said to be linked to the value of the NZ Dollar and right now the NZD is too high to maintain inflation at the target rate of 2%. A lower OCR will provide some upside for home owners with lower interest rates.
Tag Archives | inflation
Auckland’s rampant house price inflation is due to a historical net supply problem says Matthew Gilligan of Gilligan Rowe & Associates.
In a recent article on the GRA website Matthew suggests a lot more work needs to be done to improve the consenting process and lower the cost of building materials so the supply of new housing can be sped up.
House prices are not only a key indicator of what is happening in an economy but they can also be a trigger for a change in economic conditions. Hence the state of the housing market comes under close scrutiny by the Reserve Bank and other Government officials. There is a very close link between house prices and inflation.
One of the biggest challenges in retirement is how to invest your money to provide an income while still protecting yourself against the eroding effects of inflation and income tax.