Steve McKnight

Hello and welcome along to the Property Academy podcast by Opus Partners.

I'm your host, Steve McKnight.

And this is a show that helps Kiwis go from zero to five investment property so you could be financially free and stick around for the next 15 minutes because you're going to learn what the Reserve Bank just announced, our interest rate predictions and how expensive your mortgage could get, and when the Reserve Bank thinks the price of petrol will finally get back to normal.

Now, Andrew, we've just had the OCR announcement.

We're recording this maybe

three hours after it dropped, what happened?

These are the first forecasts since the closure of the Strait of Hormuz.

So now we really get to understand what could happen, both with inflation and interest rates and unemployment and also house prices.

Now, in terms of how high inflation could go, remember, we're currently sitting at 3.1%.

The Reserve Bank thinks we're going to get up to 4.3% in September this year.

So in the three months, July, August, September, that's where they think inflation is going to be at its highest.

peaking at 4.3%, and then they reckon it's going to start to drop back from October, but will only really drop mid-year.

So that's kind of the best guess about, well, when could the price of petrol get back to normal?

Best guess, kind of mid-next year, we might see it really start to taper off.

Well, they're assuming that eventually the strait's going to open, right?

So one thing that the Reserve Bank will do is look at the oil markets and say, well, what are oil futures doing?

Which is basically to say to you guys, when do we think the price of oil might start to drop away?

And so they're saying, look, by the time we get through to mid next year,

We think the price of petrol will be coming back to normal.

The Strait will likely be open at that point.