tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, March 2nd, 8:41AM

Mortgages

Mortgage Rates Daily Commentary
Friday 1 March 2024  Add your comment
Find out who is new to the industry

Something a little different today - we have two people announcements and would like to say to you, if you have made a new appointment please let us know.

You can send details to editor@tmmonline.nz

First up small business lender Bizcap has entered the New Zealand market and appointed its first local general manager. Find out who got the job here.

Secondly, Avanti has added a new business development manager for the Golden Triangle region of New Zealand.

Both these people were at last week's TMM Better Business Conference.

rss
Latest Headlines

Rate cut picked for Thursday

Both economists and the wholesale interest rates market are convinced the Reserve Bank will cut its Official Cash Rate (OCR) again at its next review on Thursday.

Monday, July 21st 2003, 2:29AM

by Jenny Ruth

The central bank has cut the OCR twice already since late April from 5.75% to 5.25%.

A Reuters poll of 15 economists shows all are expecting a cut with a 70% chance of it being 25 basis points and a 20% chance of it being 50 points. Eight of them expect a further rate cut at the next monetary policy statement on 4 September.

The market has already anticipated a 25 point cut this week with the 90-day bank bills trading at 5.07% on Friday. It is less certain about future cuts with both the September and December 90-day bank bill futures implying a 4.95% physical rate by those dates.

Deutsche Bank is the most aggressive in picking future rate cuts. Senior economist Darren Gibbs says his bank thinks that there are risks that if the Reserve Bank doesn’t cut interest rates substantially further, the New Zealand dollar will rise far beyond its current relatively high rate and that that will put unnecessary pressure on exporters.

The currency’s rise is being fueled by the large gap between New Zealand’s interest rates and the rest of the world. In the world’s biggest economy, the US, the Federal Reserve cut its key interest rate last month to just 1%.

The Reserve Bank is in something of a quandary because inflation in the "non-tradeables" part of the economy, which includes housing, is running at a 3.8% annual rate. "That’s clearly not a low rate of inflation," Gibbs says.

But the overall inflation rate in the year ended June was just 1.5% because of double whammy of the high weak commodity prices and the high currency delivering lower earnings to farmers and other exporters.

"It really is a question of what the bank chooses to focus on," Gibbs says.

Anthony Byett, chief economist at ASB Bank thinks the central bank should probably cut the OCR 50 points this time around because of the currency’s negative impact, but he guesses it will choose the more conservative 25 points.

The economy has already slowed and "the time has come for (Reserve Bank governor) Dr (Alan) Bollard to be more decisive," Byett says. Gross domestic product slowed to just 0.6% in the March quarter and was probably negative in the June quarter, he argues. And inflation is hardly a problem, having hit zero in the June quarter.

Bancorp Treasury Services is similarly worried about the high currency’s impact and agues the logic of a 50 point cut. The central bank needs to recognise that New Zealand’s comparatively high interest rates "will be a constant spur to the currency and therefore a nagging factor which works against its policy intentions."

Stephen Toplis at Bank of New Zealand is at the other end of the spectrum, saying only a 25 point cut is warranted.

"We’re in no doubt that economic growth is slowing, but we think it’s only slowing to be marginally below trend." The stimulus the central bank has already injected, coupled with the likelihood that the global economy is recovering, should mean a reasonable outlook for the domestic economy, Toplis says.

« New GM at Mortgage LinkWinter finally hits housing market »

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
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.45 7.05 6.85
ANZ 8.64 7.99 7.49 7.35
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.39 6.89 6.75
ASB Bank 8.64 7.39 6.89 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.29 6.85 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 ▼7.89 ▼7.45 ▼7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼7.09 - -
Co-operative Bank - Owner Occ 8.40 ▼7.29 6.89 6.75
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 ▼7.79 7.39 7.25
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.85 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.59 7.29
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.35 7.89 7.65
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.35 6.89 6.75
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.90 7.39 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.30 7.89 7.69
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.30 8.89 8.69
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.95 7.45 7.29
SBS Bank Special - 7.45 6.95 6.79
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 7.05 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.19 7.55 7.55
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.39 6.75 6.75
Unity 8.64 6.99 6.85 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 7.15 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.45 7.37 6.77

Last updated: 1 March 2024 10:00am

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

Also compare rates to OCR
Find a Mortgage Broker

Add your company

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