Category Archives: Banking

NZ’s Growth Prospects Force Reserve Bank To Lift Rates

The Reserve Bank today increased the Official Cash Rate (OCR) by 25 basis points to 3.5 percent. New Zealand’s economy is expected to grow at an annual pace of 3.7 percent over 2014. Global financial conditions remain very accommodative and are reflected in low interest rates, narrow risk spreads, and low financial market volatility. Economic [...]

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Reserve Bank exempts lending for new construction

  “The Reserve Bank has recently consulted with the building industry and banks on the impact of LVR restrictions on residential construction activity,” Mr Spencer said. “While high LVR construction lending is only around 1 percent of total residential lending, it finances around 12 percent of residential building activity. “This exemption means that low deposit [...]

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Reserve Bank leaves rates unchanged

NEW Zealand’s central bank left the official cash rate unchanged at 2.5 per cent today, saying the economic outlook was improving but only at a modest pace. Inflation was of less concern to Govenor Allan Bollard despite it being outside the 3% target band. In his statement Bollard said “September quarter inflation data suggest that, [...]

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