The Reserve Bank may yet consider postponing the beginning of
it monetary tightening policy as mortgage holders swing in
increasing numbers to floating their loans.
The New Zealand sharemarket fell in early trade after the
Reserve Bank left the official cash rate unchanged at 2.5
percent, but sounded more upbeat than some economists had
been expecting.
The Reserve Bank of New Zealand (RBNZ) has left the official
cash rate (OCR) unchanged at 2.5 percent, but its
accompanying statement suggested concerns about the risk of
inflation growing.
The Reserve Bank left the official cash rate (OCR) unchanged
at 3 percent today as growth continues to moderate, but
rebuilding following $5 billion worth of earthquake damage in
Canterbury is expected to help boost the economy.
Time was running out for homeowners with floating mortgages
to decide whether or not to move to a fixed-term rate, Craigs
Investment Partners broker Chris Timms said yesterday.
The Reserve Bank left the interest-driving official cash rate
at 3% yesterday and indicated the pace of further increases
was likely to be moderate, compared to expectations given in
June.
The Reserve Bank of Australia (RBA) is waiting for key
inflation data before it decides what to do with its
benchmark interest rate next month, right in the middle of
the Australian election campaign.
The Reserve Bank has been
investigating the potential for other policy tools to help
support its traditional official cash rate instrument in
monetary policy, and will continue to look, Reserve Bank
governor Alan Bollard says.
