Independent economist Tony Alexander believes Wednesday’s 0.75% official cash rate increase by the Reserve Bank of New Zealand (RBNZ) will further “scare off” home buyers and will “exert some extra downward pressure on house prices”. ___________________________________________________________________________________________The Reserve Bank yesterday raised its official cash rate by 0.75% which was largely expected. They also increased their projected peak for the cash rate from 4.1%. Rates have just risen, and some buyers have been scared back. When rates are widely seen as likely to fall, the backlog of buyers which has been building up for a long period of time will become active – investors particularly although some are currently selling as rates rise.

Source: The Irish Times November 24, 2022 16:00 UTC