Think about fixing at a two-year rate soon
In the BNZ Weekly Overview he says some of the longer-term fixed rates have been cut in recent weeks, but this is of little importance because few people are borrowing for fixed periods beyond two years.
Alexander says he would not contemplate grabbing a nice low fixed rate for terms three years and beyond until this interest rate cycle has peaked then bottomed out again some year down the track from now.
"If I were borrowing at the moment I would still be floating and paying down debt as much as possible."
BNZ believes the Reserve Bank still looks to be on track to start taking away the stimulatory monetary policy setting of a 2.5% cash rate come June, though there is a risk they might wait a tad if data releases come in weaker than expected before then.
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