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Mortgage Rates Daily Commentary
Friday 20 September 2019  Add your comment
SBS rate cut; OCR preview

Good morning.

As Spring kicks in, another bank has slashed mortgage rates.

SBS Bank’s 3 year rate drops to 3.89%, level with ASB. Check out our rates table here.

Meanwhile, economists have told us they don’t expect the Reserve Bank to cut the Official Cash Rate next week. See why here: [READ ON].

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Rate rise unlikely this week

Reserve Bank governor Alan Bollard is unlikely to hike rates on Thursday but, with inflation having breached Bollard's target range, the number of economists predicting future rate hikes is growing.

Sunday, January 20th 2008, 4:00PM

by Jenny Ruth

All 11 economists surveyed by Good Returns expect Bollard to hold his official cash rate (OCR) steady at 8.25%.

"Certainly OCR cuts look unlikely until early 2009 (barring a considerable down-leg in global growth) with a small probability of further Reserve Bank tightening over 2008," says ASB Bank economist Daniel Wills.

Figures released last week showed annual inflation at 3.2%, above the central bank's zero to 3% target. While one of Bollard's inflation bugbears, the housing market, is now trending down, "there is plenty to keep the Reserve Bank concerned regarding inflation," Wills says. With factors such as high global commodity prices and a tight labour market to take into account, he expects inflation will remain well above 3% at least until the end of 2008.

Westpac chief economist Brendan O'Donovan, who expects Bollard will have raise rates twice through 2008, says he expects the tone of the statement will be hawkish.

While high interest rates, high petrol prices and the housing market correction will be welcome signs for Bollard, "very strong wage growth, a wall of dairy cash and the carrot of tax cuts/fiscal stimulus" will be pushing in the opposite direction.

Darren Gibbs at Deutsche Bank says he expects Bollard's statement will "leave little doubt that, in the near-term at least, a further rate hike is significantly more likely than a rate cut."

But in the meantime, growth projections for major trading partners have been revised down and Gibbs expects them to be further revised down.

Bank of New Zealand chief economist Tony Alexander warns there's still a 25% chance Bollard will raise rates as early as Thursday, even though he isn't expecting it. That's because business surveys are showing worsening resource availability and rising expectations of cost and price increases, he says.

« Dramatic changes to home loan ratesBank five-year rates fall »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.15 ▼4.04 4.49
ANZ Special - 3.65 ▼3.54 3.99
ASB Bank 5.20 4.15 4.09 4.39
ASB Bank Special - 3.65 3.59 3.89
BNZ - Classic - 3.65 ▼3.49 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
Housing NZ Corp 5.19 ▼4.15 ▼4.09 ▼4.39
HSBC Premier 5.24 3.35 3.35 3.35
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.30 4.34 4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.55 3.59 3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.69 4.79 -
Resimac 5.30 4.86 4.14 4.19
Lender Flt 1yr 2yr 3yr
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.69 3.69 ▼3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.65 3.59 3.99
The Co-operative Bank - Standard 5.15 4.15 4.09 4.49
TSB Bank 6.09 4.65 4.59 4.85
TSB Special 5.29 3.85 3.79 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.34 - - -
Westpac Special - 3.65 ▼3.54 3.99
Median 5.35 4.15 4.09 4.19

Last updated: 20 September 2019 9:30am

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