Still down they go
Rate reductions in recent days have added to a series of falls over the past month for both fixed and floating rate mortgages.
Monday, September 18th 2000, 11:22AM
by Paul McBeth
Rate reductions in recent days have added to a series of falls over the last month for both fixed and floating rate mortgages.
The latest lenders to tweak their rates include Cairns Lockie, which marked down all its fixed rates on Friday, AXA New Zealand (floating rate now 8.45 per cent and one year fixed 7.95 per cent), WestpacTrust and ASB Bank (both with cuts to fixed rates).
Most of the action's been on the shorter term loans. You can now pick up a floating rate mortgage at 8.2 per cent to 8.7 per cent, a one-year fixed mortgage for as low as 7.79 per cent and the three-years for anything between 8.2 per cent and 8.6 per cent (see our rates table for more details).
Meanwhile, the Reserve Bank's expected to hold off on rate increases at the next monetary policy review, scheduled for just over a fortnight's time. ASB Bank economists say the jury is still out on the extent of a rebound from the mid year economic lull.
In their weekly report, they comment that the current two per cent annual food price increase is expected to hit three per cent by the end of the year and the Consumer Price Index is also expected to breach three per cent. However, they say that, as demand should remain soft, the likely result is tight margins, strained household budgets and a generally slow domestic sector.
"Conversely, the export sector is expected to grow strongly in the next few months. The Reserve Bank is likely to take the opportunity to stand back and let this very mixed situation develop further before changing their stance when they come to review monetary policy October 4. A decision to tighten - if need be - would appear best deferred until the December Monetary Policy statement (December 6)."
Other dates to watch:
Friday September 22: current account figures, year to June
Tuesday September 26: provisional trade balance for August
Friday September 29: June quarter GDP