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Mortgage Rates Daily Commentary
Wednesday 11 December 2024  Add your comment
Meaningful difference seen as coming from Kiwibank’s capital raise; Profit for specialist lenders falls again

Starting with institutional investment and an eventual IPO is an excellent start for turning Kiwibank into a meaningful disruptor, David Cunningham Squirrel Mortgages chief executive says. [READ ON]

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BNZ picks March rate hike

The Bank of New Zealand has stuck its neck out and suggested the RBNZ will raise rates early next year.

Monday, November 10th 2003, 7:58AM

by Jenny Ruth

While most economists are expecting the Reserve Bank to sit on its hands until at least June before raising interest rates, Bank of New Zealand has stuck its neck out with a prediction of a rate hike in March.

The forecast comes in the same week the central banks in Australia and England surprised the markets with rate hikes.

In the US, economists are rethinking when they expect the Federal Reserve to start raising rates and most have brought forward the date, although they still think it won’t happen before the middle of next year.

BNZ economists note that the wholesale interest rate markets put the next rate hike even sooner, in January, although most of its competitors are picking June or later.

"All of the views expressed by the various punters have their merits and all are defensible under certain scenarios," it says.

But it believes the RBNZ is worried that annual inflation will break through the top of its zero to 3% target. Its last forecasts published in September showed inflation peaking at 2.8% early in 2005 and staying there.

Since then, "the bank appears to have, if anything, become more concerned about this prospect rather than less. This is because the majority of economic indicators … indicate activity is surprising on the topside of the bank’s printed forecasts."

In particular, BNZ notes how tight the labour market is with unemployment at 4.7% and business surveys suggesting both skilled and unskilled labour is very difficult to find.

As well, the global economy looks as if it will pick up faster than the central bank was expecting. And the housing market is running hot with annual house price inflation running at 16.2%.

BNZ, along with most other forecasters, think inflation will turn out to be lower than the central bank expects. "But it doesn’t matter what we think. If the bank is nervous, and it is telling us so, then it will act on its own assumptions."

The good news is that BNZ doesn’t think the Official Cash Rate will rise much higher than 5.75%.

« FGNZ leaves Mortgage AllianceEconomists bring rate hike forward »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 5.79 5.49 5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 5.79 5.49 5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance 7.90 - - -
Basecorp Finance 8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 5.79 5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.99 5.89 -
First Credit Union Standard 7.69 6.69 6.39 -
Heartland Bank - Online 6.99 5.49 5.39 5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 5.79 5.59 5.59
Kainga Ora ▼7.39 ▼5.79 ▼5.59 ▼5.69
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 ▼6.69 ▼6.49 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 ▼5.79 ▼5.59 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 5.75 5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - ▼5.89 ▼5.49 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 ▼4.89 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 6.39 6.39
TSB Special 7.39 5.69 5.59 5.59
Unity 7.64 5.79 5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 7.70 5.95 5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.79 5.69 5.69

Last updated: 12 December 2024 9:22am

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