New Zealand’s Official Cash Rate reduced to 1.75%

The Reserve Bank of New Zealand today reduced the Official Cash Rate (OCR) by 25 basis points to 1.75 percent. In relation to the effects on the property sector, Reserve Bank Governor Graeme Wheeler said in his announcement, “House price inflation remains excessive and is posing concerns for financial stability.  Although house price inflation has moderated in Auckland, it is uncertain whether this will be sustained given the continuing imbalance between supply and demand.”

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