Mortgage rates could hit 9pc before end of the year
Floating mortgage rates could be close to 9 per cent before the end of the year, despite the Reserve Bank picking that the pace of economic growth is now slowing down.
Monday, September 13th 2004, 3:33AM
by The Landlord
Reserve Bank Governor Alan Bollard today revealed his fifth interest rate rise this year, lifting the Official Cash Rate (OCR) from 6 per cent to 6.25 per cent.The rise was widely expected especially after Finance Minister Michael Cullen all but confirmed the move in a parliamentary gaffe yesterday.
Dr Bollard warned a number of times in today's September Monetary Policy Statement (MPS) that more hikes were on the cards, on top of the 125 basis points tightening in the year to date.
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