RBNZ eyes 20% house price fall

Peak to trough fall only half way there, RBNZ sees in MPS with slightly higher interest rate forecast track, slower GDP growth and firmer inflation; Orr's second term still in limbo

TLDR: The Reserve Bank surprised no one yesterday by hiking the Official Cash Rate another 50 basis points to 3.0% and lifting its forecast for the OCR peak by around 10-15 basis points to 4.1%.

However, it extended its forecast for a peak-to-trough fall in house prices to as much as 20% by the end of next year from closer to 10-15% at its last Monetary…