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By JON HOYLE - The Dominion Post | Thursday, 25 October 2007
BREAKING NEWS: Home owners were given a reprieve today when Reserve Bank Governor Alan Bollard announced he would hold official interest rates at 8.25 per cent.
With inflation running at under 2 per cent and the housing market slowing, most economists predicted the Reserve Bank would let interest rates lie, but expect rates to rise next year.
A rise would have pushed fixed mortgage rates above 9 per cent, and hit the housing market, which has already suffered a big slump in sales volumes and flat median prices in the last few months.
Most two-year fixed interest rates are just above 9 per cent and longer term rates recently rose to just under 9 per cent.
Westpac economists expect rates to rise twice next year.
Independent economics group Infometrics predicts rates to reach 8.75 per cent in the next six months.
BREAKING NEWS: Home owners were given a reprieve today when Reserve Bank Governor Alan Bollard announced he would hold official interest rates at 8.25 per cent.
With inflation running at under 2 per cent and the housing market slowing, most economists predicted the Reserve Bank would let interest rates lie, but expect rates to rise next year.
A rise would have pushed fixed mortgage rates above 9 per cent, and hit the housing market, which has already suffered a big slump in sales volumes and flat median prices in the last few months.
Most two-year fixed interest rates are just above 9 per cent and longer term rates recently rose to just under 9 per cent.
Westpac economists expect rates to rise twice next year.
Independent economics group Infometrics predicts rates to reach 8.75 per cent in the next six months.
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