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Mortgages

Mortgage Rates Daily Commentary
Monday 25 November 2024  Add your comment
All eyes on interest rates for the next two years

Aside from the expected RBNZ 0.50% OCR drop on Wednesday, economists are expecting a thorough update of where it sees interest rates going over the next two years. [READ ON]

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Ogling the OCR

What the pundits think ahead of the next interest rate review this Wednesday.

Sunday, December 3rd 2000, 3:15PM

by Paul McBeth

Interest rates come under the spotlight this Wednesday, as the Reserve Bank releases its latest quarterly Monetary Policy Statement and reviews the Official Cash Rate. As that rate has a direct bearing on floating and shorter-term fixed rate mortgages, here's a quick round-up of what the pundits are expecting.

Anthony Byett, Economist, ASB Bank

"There is still the strong chance that the RB will raise the current 6.5 per cent cash rate to 6.75 per cent, either (on December 6) or in early 2001.

"While the growth rate in the US is decelerating, growth in New Zealand is only just re-emerging. The low New Zealand dollar has created a stimulatory environment for New Zealand producers and this is expected to feed through to three per cent higher output levels next year (meanwhile the US is headed for a two per cent growth rate). At the same time, inflation is already above the three per cent target...and is likely to remain relatively high throughout 2001.

"Rather than risk an even higher and more persistent bout of inflation, the RB could soon nudge the cash rate higher."

 

Cairns Lockie, Mortgage Bankers

"The factors that may cause an increase (in the OCR) are rising inflation, increased retail spending and rising wage rounds. Factors that will keep the cash rates at their current levels include slower than expected economic growth and a generally less robust economy.

"We have talked with a number of financial commentators and the consensus view is that the cash rate will remain unchanged. The market, with the recent easing of the bond yields, is saying the same thing."

 

Ulf Schoefisch, Chief Economist, Deutsche Bank (Global Markets Research)

"We expect the RB to leave the OCR unchanged at 6.5 per cent on December 6, but maintain its projection of a further rise in 90 day rates over the next year.

"The Trade Weighted Index depreciation since the August Monetary Policy Statement - around eight per cent - is causing significant additional inflation pressure. As a result, we expect the RB to revise the forecast peak of the CPI cycle from 2.9 per cent to 3.6 per cent.

"Based on the assumption of falling oil prices and a strengthening New Zealand dollar (based partly on a significant current account improvement), the RB is likely to maintain its projection of a relatively rapid decline of CPI inflation from its peak to an annual rate of two per cent by early 2002."

Paul is a staff writer for Good Returns based in Wellington.

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 5.65 5.55 5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society ▼8.60 6.75 6.40 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 5.95 6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.49 6.49 6.49
TSB Special 7.89 5.69 5.69 5.69
Unity 7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.10 6.05 5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.02 5.79 5.69

Last updated: 20 November 2024 9:45am

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