ORR raises 75 and the terminal to 5.5% ... jumbo
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ORR raises 75 and the terminal to 5.5% ... jumbo
Good for term deposits I guess.
Its not Gospel's truth though ...so market will try to use its own perceptions ...Market remembers what they said just last August ...from 4.1% to 5.5% ...maybe in Feb 23 they will do another somersault ...lol :p
But looks bad short term but good long term though
Will this be the stake through the heart for NZ's property "industry"?
How high will it have to go before the wasteful government spending that's fuelling inflation is curbed?
The impact of how long they expect rates to remain elevate is extremely important with property in my opinion. Property prices move slowly, so it allows adequate time for prices to reach levels backed by say DCF.
For example, good luck picking up a rental that net yields more than cash in the bank. Current rates aren't fully priced in. Housing has a long way to fall.