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The Reserve Bank has reduced the official cash rate by 25 basis points, bringing it down to 5.25%. This marks the first reduction since March 2020.

According to the Reserve Bank, New Zealand's annual consumer price inflation is gradually moving back within the Monetary Policy Committee’s target range of 1 to 3%.

The Reserve Bank's latest forecast indicates that the OCR is expected to decrease further, potentially reaching 5% by the end of the year and dropping to around 4.5% by June next year.

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📊 Property Market Update: Investors on the Rise 📊

Investors are returning to the property market, while first home buyers are seeing a decline.

🔹 Investors:

Annual mortgage growth: +11.5%
June total: $1.047 billion
🔹 First Home Buyers:

Annual mortgage decline: -12.5%
June total: $1.212 billion
🔹 Movers:

Growth decline: -1.1%
June total: $3.252 billion
🔹 Overall Market:

Total new mortgages in June: $5.6 billion (down 18.7% from May)
Average new loan value: $384,990 (up 2.2% from May)
Key takeaway: The property market is shifting with investors taking a larger share. Stay tuned for more updates!



Source: Reserve Bank of New Zealand

Bhavin Desai
Mortgage Adviser
REFIX
📞 +64212330244
✉️ [email protected]
🌐 www.refix.co.nz

Disclaimer: The information provided in this program is of a general nature, and is not intended to be personalized financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.

📉 Inflation Drops, Paving the Way for Potential Interest Rate Decrease:

📊 Inflation Drops: Annual inflation rate falls to 3.3% in the June quarter as per StatsNZ
🛒 Food Prices Down: Relief for shoppers as food prices decline.
🏠 Housing Costs Rise:
💸 Rent: Up by 4.8%
🏗️ Construction: New house construction costs and council rates increase.
📈 Insurance Costs Surge: Up 14% over the past year.
🎉 Positive Signs:
🎮 Recreation and culture costs down.
🏨 Accommodation services prices decreased by 4.5%.
🔮 Economic Outlook: The Reserve Bank is optimistic about achieving 1-3% inflation by the end of the year, potentially leading to interest rate cuts.

Let's hope for continued progress! 🌟

Stay informed and plan ahead! 🏠📉



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Bhavin Desai
021 233 0244
[email protected]

📉 Positive Signs Ahead: Interest Rates Expected to Drop with New CPI Data This Week 📉

🏦 Optimism on RBNZ tone: There's a growing optimism about inflation control and the potential for interest rate cuts after the Reserve Bank's recent shift in tone

📊 Upcoming CPI data: We eagerly await the Consumer Price Index (CPI) data for the three months to June 30, which could bring more good news.

📉 Current inflation rate: The annual rate has improved significantly to 4% in the year to March 31, down from a peak of 7.3% in June 2022, showing progress towards the RBNZ's target range of 1-3%.

🔍 Economist forecasts: Positive predictions from ANZ and ASB suggest a 0.4% quarterly rise in CPI, bringing the annual figure to a manageable 3.3%-3.4%. Even the cautious Westpac forecasts a manageable 0.6% rise and 3.5% annually.

🗓️ ASB's outlook: ASB senior economist Mark Smith anticipates sub-3% inflation in the second half of 2024 and sees the potential for a 25-basis-point OCR cut in November.

🚫 Non-tradeable inflation progress: We're seeing progress in reducing sticky, non-tradeable inflation, which measures goods and services not facing foreign competition.

🌍 Tradeable vs. non-tradeable inflation: As per Stats NZ, Tradeable inflation has significantly decreased to 1.6% in the year to March 2024, while non-tradeable inflation is also trending positively at 5.8%.

📉 ANZ's expectation: A potential fall in non-tradeable inflation to 5.3% in Q2 would be a positive signal, potentially leading to earlier OCR cuts.

📈 Westpac's positive view: The strength in non-tradeable inflation in areas like insurance and utilities is being managed well, ensuring inflation expectations remain stable.

🎭 Positive impact on discretionary spending: Despite previous pressures, there are signs of stabilization in domestic services, highlighting effective management by the RBNZ.

📞 Contact me today for personalized mortgage advice!
Bhavin
Refix Mortgage Adviser
021 233 0244