RESERVE BANK DECISION THIS WEEK

Written By Jodi Hodgetts

The big economic story this week was the Reserve Bank of New Zealand holding the Official Cash Rate at 2.25% but signaling that future rate rises are now likely.

In summary:

  • The Reserve Bank committee was split 3 -3 (Governor Anna Breman had to use the deciding vote)

  • Some members actually wanted rates increased now

  • Inflation concerns remain around oil prices, shipping costs and global instability

As a result:

  • Wholesale interest rates rose

  • Banks may become less aggressive with mortgage pricing

  • The “rates will just keep falling” narrative cooled quickly

So what does this mean for property?

The Auckland market still feels relatively balanced:

  • Buyers remain cautious and value-focused, but may choose to purchase sooner to lock in lower interest rates

  • Good homes are still attracting competition

  • Overall house prices are more stable than surging

At the moment, it continues to feel like a market where experience, strategy and strong negotiation skills really matter.

Jodi Hodgetts
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