No change to OCR—good news for mortgage rates!
Mortgage lending rates look set to stay low for the foreseeable future as the Reserve Bank indicate the Official Cash Rate (OCR) will likely stay at 1.75 percent through until 2020.
The Reserve Bank says in the November Monetary Policy Statement (MPS), released this morning, that encouraging people to spend and businesses to expand and invest will support economic growth and inflation, helping to ensure a sustainable rise towards the 2 percent inflation target.
Other key points from the MPS:
- Employment is at the highest level on record due to an expanding economy and growing population
- KiwiBuild will help to build more houses and contribute to construction activity over time
- While petrol prices have been increasing quickly, other prices are still low and economic growth needs to increase to sustain inflation at 2 percent.
You can read more on the OCR announcement and November Monetary Policy Statement on the Reserve Bank website.