OCR Remains Unchanged At 3.5%

OCR Remains Unchanged At 3.5%

The Reserve Bank announced this morning that the official cash rate will remain unchanged at 3.5%.

Reserve Bank governor Graeme Wheeler stated that interest rate hikes have been ruled out due to inflation sitting at just 0.1 per cent which reflects plunging oil prices.

Wheeler suggested that a rate cut could be on the cards and that any future adjustments will depend on how inflationary pressures evolve.

“It would be appropriate to lower the OCR if demand weakens, and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target.”

Mike Pero Real Estate CEO Mike Pero believes the unchanged rate is positive for both buyers and sellers.

“Although we could expect a rate cut later in the year, the good news for those selling their houses is that demand will continue to be strong as buyers will continue to have access to low rate mortgages.”

ENDS

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