About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, August 29th, 2:34PM
Mortgage Rates Daily Commentary
Thursday 28 August 2014  Add your comment
BNZ has new Classic rate

BNZ had lowered its three-year Classic rate to 6.19% today.

rss
Latest Headlines

OCR cut unlikely this week

Economists agree there is little chance the Reserve Bank will cut the OCR this Wednesday. But they all seem to think a cut is on the cards for later this year.

Monday, October 1st 2001, 6:43AM

by Jenny Ruth

After his aggressive interest rate cut two weeks ago, practically nobody is expecting Reserve Bank governor Don Brash to cut the official cash rate (OCR) again on Wednesday, the official review date.

But just as near universal are the expectations of further rate cuts later on.

Brash cut the OCR from 5.75% to 5.25% on September 19, primarily as an insurance policy against the likely impact on global growth of the September 11 terrorist attacks in the US.

"Given the massive writedowns in the outlook for the global economy, rates are only heading one way at the moment," says Cameron Bagrie, an economist at National Bank. Bagrie expects the next rate cut will be timed for the November 14 monetary policy statement. "(A cut in the OCR to) 5% is a gimme as far as I’m concerned. You couldn’t rule out a bigger cut,’’ he says.

Adrian Orr, chief economist at WestpacTrust, says Brash has two big reasons to wait until November, the weakness in the New Zealand dollar since the terrorist attacks and the unexpectedly strong 2% growth in the domestic economy in the June quarter. The market had been expecting only 1.4% growth for the quarter.

"We think the economy’s kicking on quite well at the moment, but most of our major trading partners are lining up in a recessionary formation,’’ Orr says. WestpacTrust is looking for at least a 25 basis point cut on November 14.

While critical of the Reserve Bank changing rates outside its official review dates, Stephen Toplis, an economist at Bank of New Zealand, "we weren’t in the slightest bit critical of the decision to cut,’’ he says. Indeed, based on the central bank’s previous pronouncements, "50 basis points now look increasingly likely (in November). An eventual 75 basis point move before the cycle is complete is not out of the question.’’

Topliss says there’s even an outside chance of a rate cut on Wednesday. "We think the possibility is very slight, but it is no longer zero.’’

David Drage, an economist at ANZ Bank, is punting on no change on 3 October and a 25 basis point cut on 14 November. ``The reason why I would be towards the slightly more cautious end of the market is in reaction to the GDP data. There’s a fair amount of momentum,’’ Drage says.

Clearly, an international slowdown will impact on New Zealand, but Brash will still be mindful of some strong domestic inflationary pressures, he says. These include the strength of the labour market, with the participation rate at a historically high level.

"Even if the economy is undermined by recent developments in the world economy, those labour market pressures are likely to remain for some time,’’ he says.

« Mortgage borrowing rises $357 million in AugustOCR left at 5.25% »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
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 ▼6.19
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 ▲6.65 5.99 6.39 6.65
Kiwibank - Capped 5.65 6.50 - -
Kiwibank - Offset ▲6.55 - - -
Kiwibank LVR > 80% - - ▼5.89 -
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 LVR < 80% 6.59 ▲6.35 ▲6.58 ▼6.77
RESIMAC LVR < 85% - - - -
Lender Flt 1yr 2yr 3yr
RESIMAC LVR < 90% - - - -
RESIMAC LW DOC - - - -
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 - - ▲5.99 -
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 6.19
Median 6.68 6.03 6.39 6.65

Last updated: 28 August 2014 11:20am

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
from
to
for
To graph multiple lenders, hold down Ctrl key while clicking in list box
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com