PHOTO: The Reserve Bank is expected to start raising its key interest rate as soon as next month Photo: 123RF
It held the cash rate at 0-point-25 percent but halted the bond buying programme, which has cleared the way for a rise starting next month and another in November.
Kiwibank chief economist Jarrod Kerr said just about everyone will be affected to some degree.
According to Kerr, there could be at least three interest rate rises from the central bank within a year.
The Reserve Bank held the official cash rate at a record low zero-point-2-5 percent yesterday, but halted its bond buying programme.
It is expected to start raising its key interest rate as soon as next month.
“What they’ve said is that they want to remove some of the policy stimulus out there and that’s their way of saying we’re going to stop buying bonds, we’re going to stop the quantative easing program and we’re going to let wholesale interest rates lift,” he said.
He said the forecast interest rate rises could mean current mortgage rates between two and four percent, could rise to three or five percent.
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