Latest / Early Edition with Ryan Bridge / Leigh Hodgetts: Finance and Mortgage Association Country Manager on the Reserve Bank holding the OCR

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Leigh Hodgetts: Finance and Mortgage Association Country Manager on the Reserve Bank holding the OCR · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: All right, So, as predicted by economists, of Reserve Bank
• 0:02
  Speaker 1: has kept the OCA at three point twenty five percent.
• 0:05
  Speaker 1: This comes after six consecutive cuts since last August. The
• 0:08
  Speaker 1: Reserve Bank reckons it needs more clarity on inflation, but
• 0:11
  Speaker 1: that rusted and inflation's high. Things like rates and insurance
• 0:14
  Speaker 1: and all that sort of stuff. But they're also worrying
• 0:16
  Speaker 1: about the local economy and international trade going forward. But
• 0:20
  Speaker 1: at the end of the day, for us, it means
• 0:23
  Speaker 1: what does it mean for your mortgage? And Lee Hodges
• 0:25
  Speaker 1: is the Finance and Mortgage Association country manager and joins me. Now,
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  Speaker 1: good morning to.
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  Speaker 2: You, Lee, Good morning, how are you.
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  Speaker 1: I'm well. Were you disappointed that there wasn't a cut?
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  Speaker 2: Look, we certainly were, and most borrowers around the country
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  Speaker 2: would have felt disappointed as well. It just I think
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  Speaker 2: it's a breath. We're pausing at the moment, but we
• 0:45
  Speaker 2: were hopeful of at least at twenty five basis points
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  Speaker 2: reduction this month, so we hold out for August.
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  Speaker 1: Now, well, exactly, Well, why do you think we need
• 0:54
  Speaker 1: a cut, Why do you think we need lower interest rates?
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  Speaker 2: Well, I think it's still the household spending is very stretched.
• 1:02
  Speaker 2: You just mentioned that the cost of living is still
• 1:05
  Speaker 2: really high in different areas around the country. We're seeing
• 1:09
  Speaker 2: different economic pressures in the regions and the city. So
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  Speaker 2: what we are seeing that people are a little stretched
• 1:16
  Speaker 2: still and looking for that bit of relief in household spending,
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  Speaker 2: I guess, and interest rates coming down and being able
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  Speaker 2: to afford more putting money into other things apart from
• 1:28
  Speaker 2: paying interest to a banker is something that they would
• 1:30
  Speaker 2: look forward to.
• 1:31
  Speaker 1: And reading the tea leaves you mentioned August, do you
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  Speaker 1: think you could get a cut by then? Ll do
• 1:35
  Speaker 1: you think the Reserve Bank is really sitting on their hands.
• 1:39
  Speaker 2: I think all the sentiment is that the Reserve Bank
• 1:42
  Speaker 2: will drop another twenty five basis points in August. We
• 1:47
  Speaker 2: feel we're getting towards that bottom or that target range
• 1:50
  Speaker 2: with interrastrates, and we just feel the sooner we reach
• 1:54
  Speaker 2: that the better. I think it will just stimulate the
• 1:56
  Speaker 2: market a little bit more. We're seeing a lot of people,
• 2:01
  Speaker 2: particularly first time buyers, trying to get into the market,
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  Speaker 2: and I think how a little bit of a reduction
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  Speaker 2: will help them again to move back in, and it'll
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  Speaker 2: stimulate the housing market as well. Investors might jump back in.
• 2:13
  Speaker 2: It might just things might line up a little bit
• 2:15
  Speaker 2: better and we'll see some positive signs in both of
• 2:19
  Speaker 2: those directions.
• 2:20
  Speaker 1: Lee, I thank you for your time today, Lee Hudgits
• 2:22
  Speaker 1: the Finance Mortgage Association country manager.
• 2:25
  Speaker 2: For more from Early Edition with Ryan Bridge. Listen live
• 2:28
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• 2:31
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