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Mortgage Rates Daily Commentary
Wednesday 20 August 2014  Add your comment
Pretty benign economic news

The pre-election economic update from Treasury yesterday had no big surprises and appears to have done little to change any forecasts around future interest rate moves. Perhaps the more important release was the Reserve Bank's survey of inflation expectations. As usual, the big focus was on respondents’ views on annual CPI inflation. For the year ahead these eased from 2.08% to to 1.96%, while the forecast for two years ahead was moderated from 2.36% to 2.23%. This put the one-year view close to the mid-point of the RBNZ’s 1.0 to 3.0% target range, while the two-year view was still riding a bit above this.

The only home loan rate changes today are little ones to Housing New Zealand's offers.

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NBNZ calls for further rate cuts

The National Bank is calling for the Reserve Bank to cut interest rates further in the wake of its latest monthly survey which shows business confidence halved from March.

Monday, April 30th 2001, 12:40PM

by Jenny Ruth

The National Bank is calling for the Reserve Bank to cut interest rates further in the wake of its latest monthly survey which shows business confidence halved from March.

A net 17% of businesses now expect general business conditions to improve over the next 12 months, down from 30% at the end of March.

Chief economist Brendan O’Donovan attributes the decline to global growth jitters.

The outcome isn’t as bad as the Institute of Economic Research’s quarterly survey published earlier this month which showed confidence slumping from positive 31% to a net 2% negative.

Nevertheless, `the direction and fragility of confidence is clear,’ O’Donovan says.

`The Reserve Bank has been handed the (losing) trifecta of weakening global growth, deteriorating business confidence and modest inflation,’ he says.

While the central bank has responded by cutting rates, `more work has to be done.’

Another looming problem domestically is that drought conditions over much of the country will dampen the demand stimulus from the strong recovery in rural incomes over the past year.

`We’ll be getting a skim milk rather than full cream version of the agricultural sector in the coming year,’ O’Donovan says.

The survey’s inflation indicators should also provide the Reserve Bank with comfort to continue to reduce interest rates, he says. `Firms’ pricing intentions and inflation expectations continue to ease.’

The central bank has lowered its official cash rate from 6.5% to 6% in two 25 basis point moves so far this year.

« Floating rates sink while fixed rates riseBank margins trimmed: KPMG »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AMP Home Loans 7.24 5.99 6.39 6.65
AMP Home Loans $200k+ 7.14 5.89 6.29 6.55
AMP Home Loans LVR <80% - - 5.85 6.29
ANZ 6.74 6.05 6.49 6.65
ANZ LVR > 90 6.74 6.55 6.99 7.15
ANZ Special - - 5.99 -
ASB Bank 6.75 6.09 6.40 6.65
ASB Bank Special - - 5.99 -
BankDirect 6.75 6.09 6.99 6.65
BankDirect Special - - 5.99 -
BNZ - Classic - - 5.99 6.25
Lender Flt 1yr 2yr 3yr
BNZ - GlobalPlus 6.74 5.99 6.39 6.59
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Std, FlyBuys 6.74 5.99 6.39 6.59
BNZ - TotalMoney 6.74 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.90 6.50 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
Lender Flt 1yr 2yr 3yr
First Credit Union 6.45 - - -
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.15 5.85 5.99 6.25
HBS Special - - - 5.95
Heartland 6.45 6.75 7.00 7.60
Heretaunga Building Society 6.25 5.85 6.50 -
Housing NZ Corp ▲6.74 ▼5.99 ▼6.19 6.60
HSBC Premier 6.84 5.95 ▼5.95 ▲6.55
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 6.75 5.99 6.39 -
Lender Flt 1yr 2yr 3yr
Kiwibank 6.40 5.99 6.39 6.65
Kiwibank - Capped 5.65 6.50 - -
Kiwibank - Offset 6.30 - - -
Kiwibank LVR > 80% - - 5.99 -
Liberty 5.64 - - -
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.65
Perpetual Trust 7.70 - - -
RESIMAC - lo doc 7.59 7.06 7.38 7.82
RESIMAC LVR < 80% 6.59 6.06 6.38 6.82
Lender Flt 1yr 2yr 3yr
RESIMAC LVR < 85% 7.59 7.06 7.38 7.82
RESIMAC LVR < 90% 8.59 8.06 8.38 8.82
SBS Bank 6.15 5.85 5.99 6.25
SBS Bank Special - - - 5.95
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 6.09 6.40 6.65
Sovereign Special - - 5.99 -
The Co-operative Bank 6.70 6.00 6.00 6.25
TSB Bank 6.74 6.00 6.19 6.60
TSB Special - - 5.80 -
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 6.59 6.09 6.39 6.65
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Westpac Special - - 5.99 -
Median 6.70 6.06 6.39 6.65

Last updated: 20 August 2014 11:36am

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