11 Mar 2016

Cash rate cut adds to Auckland housing woes

11:06 am on 11 March 2016

The Property Institute says the latest cut to the official cash rate is likely to refuel Auckland property prices.

The Reserve Bank cut the official cash rate to a record low of 2.25 percent yesterday, with more reductions tipped for later this year.

The Property Institute's chief executive Ashley Church said banks were expected to lower mortgage rates in response.

He said the cut was helping create a perfect storm of conditions in the Auckland market, combined with supply issues and the expected re-emergence of chinese investment into Auckland over the next few months.