Southern Homes : February 5th 2015
Southern Homes Thursday, February 5, 2015 Rates set to be on hold ‘for some time’ The Reserve Bank has kept its key interest rate on hold at 3.5 per cent, amid low inflation, as expected. But it is leaving open whether the next move in interest rates may be ‘‘either up or down’’ after saying it would hold interest rates at 3.5 per cent ‘‘for some time’’. Inflation was expected to 6 Fountain Avenue, Karaka Lakes 2 4 2.5 2 1 "Hotel Karaka - Poolside On Fountain" For Sale $PBN View www.ljhooker.co.nz/BB4GER ljhooker.co.nz/BB4GER There´s no question a stand out location on Fountain Avenue amongst prestigious show homes and quality real estate speaks for itself. But such benefits are upstaged by the pool side resort that awaits in what the current owner´s family affectionately calls "Hotel Karaka". Deb Richards 022 012 8844 LJ Hooker - Karaka (09) 212 9905 Realty 2000 Ltd Executed to perfection there is little doubt that no expense has been spared in the creation of the inground heated pool and surrounding landscaped "spectaculaire"! Realty 2000 Ltd Licensed REAA 2008. All information contained herein is gathered from sources we consider to be reliable. However, we cannot guarantee or give any warranty about the information provided. Interested parties must solely rely on their own enquiries. 09 268 0454 09 947 6318 Manurewa Auction Karaka Pukekohe 09 239 1356 be below the RBNZ’s target band of 1 per cent to 3 per cent this year. The bank said annual inflation could even drop into negative figures because of plunging oil prices. Governor Graeme Wheeler has also said that while the New Zealand dollar has fallen recently, the currency is still ‘‘unjustified and unsustainable’’ and due for a big drop. Shifting its stance firmly into neutral but opening the door to a possible rate cut, the Reserve Bank is holding official interest rates at 3.5 per cent. The official cash rate (OCR), which was introduced in March 1999 and is reviewed eight times a year, has been at this level since July last year. In December the bank indicated that the next move was likely to be up, though many months away. The latest statement today backs up expectations that borrowers can expect mortgage lending rates to be lower for longer, with economists earlier expecting that the cash rate would be held till well into next year. Fixed term homeloan rates have already dipped in recent weeks. ‘‘In the current circumstances, we expect to keep the official cash rate on hold for some time. ‘‘Future interest rate adjustments, either up or down, will depend on the emerging flow of data,’’ Wheeler says. The RBNZ has given no clear sign of the timing of any future moves, but some economists say rates could be on hold for the foreseeable future, as much as two years. The bank’s statement comes after a shock move by the Bank of Canada to cut its interest rates in the face of plunging oil prices and low inflation. Some economists also expect Australia to cut rates. Wheeler says the high dollar, low global inflation and falling oil prices are causing traded goods inflation to be ‘‘very weak’’. Domestic, or nontradables, inflation remains ‘‘moderate’’ despite buoyant domestic demand and an improving job market. Headline inflation is expected to be below the central bank’s target band of 1 per cent to 3 per cent ‘‘through 2015’’. Annual inflation hit 0.8 per cent in 2014. That could turn negative, with generally falling prices ‘‘for a period’’, before moving back towards 2 per cent, ‘‘albeit more gradually than previously expected,’’ Wheeler says. Trading partner growth this year will be similar to last year, but the outlook is ‘‘weaker’’, Wheeler says. World oil prices have fallen 60 per cent since the middle of last year, which will boost spending power in oil importing countries, but cut income for oil exporters. Annual economic growth is above 3 per cent, supported by the building boom and rising household incomes. ‘‘The housing market is showing signs of picking up, particularly in Auckland,’’ Wheeler says. Balancing that, government belt-tightening, the reduced dairy payout, the ‘‘risk of drought’’ and the high exchange rate will all ‘‘weigh on growth’’, Wheeler says. While the New Zealand dollar has eased recently, falling to about US74 cents this week, Wheeler says the exchange rate remains ‘‘unjustified in terms of current economic conditions’’ especially export prices. 5 Across The Road View From Lounge 2 1 1 1 Auction On site, Saturday 14th February at 2pm (unless sold prior) View By appointment www.ljhooker.co.nz/ www.ljhooker.co.nz/PRHCG PRHCG Across The Road Mangere Bridge 23 Kiwi Esplanade Waterfront... Whether you are a keen fisherman, boating enthusiast or just wish to daydream until your heart´s content, the positioning of this property cannot be surpassed. North-facing harbour views filtered only by pohutakawa trees at the water´s edge, maybe a bit of morning exercise with a stroll along the beach followed by relaxing after a hard day´s work is for you? A 1920´s very tidy character filled bungalow that you can truly enjoy, as all on an easy care section. Colin Varney 021 820 444 LJ Hooker - Manukau 09 261 2440 Realty Executives Ltd Realty Executives Ltd Licensed REAA 2008. All information contained herein is gathered from sources we consider to be reliable. However, we cannot guarantee or give any warranty about the information provided. Interested parties must solely rely on their own enquiries. Is location everything? Location combined with positioning surely it is! Will you ever get the chance to live on a piece of Kiwiana paradise again?
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