New rules for the property market mean interest rate increases will now have more of an impact on house prices, ANZ economists say. “In terms of investors, it’s worth noting that interest rate increases no longer bring a larger tax offset,” the ANZ economists said. Monique Ford/Stuff Interest rate increases are now more dangerous for the economy, ANZ economists say. “There’s now a greater chance that interest rate increases could cause investors to sell up, meaning a faster braking impact on the housing market than previously. “That feeds into our expectation that the Reserve Bank will be very cautious in raising interest rates, and possibly wait too long.

Source: Stuff April 20, 2021 22:41 UTC