PHOTO: RBNZ
Westpac economists believe that the recent increase in median house prices could prompt the Reserve Bank of New Zealand (RBNZ) to “pause for thought” before pushing for further official cash rate (OCR) cuts.
The comments follow Real Estate Institute of New Zealand (REINZ)’s latest report, revealing a 6.6% increase in median house prices in the year ending September 2019.
Dominick Stephens, chief economist at Westpac, said that the expected cut in November is still “not a done deal” as the regulator could still have second thoughts if inflation data would end up better than expected.
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