The decision not to raise the Official Cash Rate was necessary because Tauranga’s property market would not cope with an increase, says Quotable Value’s regional spokesperson Shayne Donovan-Grammer.
Reserve Bank governor Alan Bollard has announced the OCR will remain unchanged at 2.5 per cent but has indicated rates could start rising by the middle of the year.
Shayne says Tauranga’s property market is still in a “fickle” state and any rise could have been disastrous.
“The overall market is a bit fickle. It’s quite vulnerable and needs a stable interest rate,” says Shane.
“There are no major signs the market is improving so it’s essential the OCR is kept steady.”
He believes it is unlikely the property market will be ready for an OCR rise by the middle of the year.