Looming impact of global funding costs
ANZ has released its latest Property Focus report which notes the future direction of mortgage interest rates is not clear cut at present.
The situation is complicated by global funding costs.
The bank’s chief economist, Cameron Bagrie, said there are two competing influences that will likely impact on the direction of local mortgage rates from here.
Accepted wisdom has it that additional OCR cuts from the Reserve Bank could see mortgage interest rates fall further, but the under-appreciated newbie factor is that increases in global funding costs are pointing to higher mortgage rates, he said.
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