RBNZ cuts OCR to 3.5%….
A 150 basis point drop has just been announced by the Reserve Bank of NZ.
Like he did in his last OCR press conference back in December 2008, Dr Bollard again called on Banks to “pass on” the savings to customers.
Mr Bollard says this is needed to “help NZ to respond” to whats happening in the market.
Although the Reserve Bank of Australia doesn’t meet until next week, for the last year or so now there’s been a delta between the two banks OCR figures [Australia currently sitting on 4.25%] this time around it was NZ’s turn to crunch the data first, and set a new rate figure.
At the press conference Dr Bollard wouldn’t be drawn on what he would expect a normal bank margin [ie: above the OCR] to be.
Be interesting to see what activity levels are like at Open Homes this weekend, especially those properties that could termed “investor” friendly?
January 29 2009 | Mortgages Finance Money and The Market | No Comments »
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