OCR Unchanged but the printers keep on Running
The Reserve Bank of New Zealand, announced yesterday the the Official Cash rate would remain at 0.25. However they have extended the Quantitative Easing program our to $100 million as they continue the large scale buying in a bid to push down retail interest rates. As Auckland moves back into Level 3 Lock down procedures with the recent Covid-19 Scare, further Covid relief funding has been signaled for those effected. So, what does this mean for the average retail borrower or investor? Simply put, interest rates are likely to move a whole lot in a short period. Best rates for borrowers still currently sits at 1 year, and bond prices climb on higher yields. Investore Property released this week it looks to raise capital with a bond release, with full details to come next week. If you are looking at any of this and wondering what it means for your financial position, reach out to one of our advisors.
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