Discussing :: Economics and Immigration

Last Thursday, the Governor of the Reserve Bank Graeme Wheeler lowered the Official Cash Rate by 25 base points from 3.5 percent to 3.25 percent. With New Zealand’s inflation rate running close to zero, factors influencing his decision included a 55 percent decline in the oil price from June last year, and a 55 percent drop in dairy prices. While he expects the resulting interest rate drop and exchange rate decline will help to cushion the dairy sector and provincial New Zealand to some extent, concerns have been raised that the lower cost of borrowing may drive up demand for housing in the already over-heated Auckland property... read full article

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Economics and Immigration

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