In response, ASB economists have lifted their official cash rate (OCR) forecasts, tipping a 0.75% rise next month and two more 0.50% rises early next year. ANZ economists have also lifted their OCR forecasts, tipping the RBNZ to hike by 0.75% in both November and February before stopping to take stock. New Zealand house prices have already plunged 12.6% from their November 2021 peak, according to the leading REINZ house price index. And the September quarter inflation shocker will only add to the pain by driving mortgage rates even higher. After recording one of the world’s biggest house price booms over the pandemic, New Zealand now faces one of the biggest busts.

Source: New Zealand Herald October 18, 2022 15:06 UTC