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Last Article Uploaded: Friday, December 6th, 6:43PM
Mortgage Rates Daily Commentary
Friday 6 December 2019  Add your comment
[Opinion] Putting the RBNZ's new capital rules into perspective

There's been a lot written about the Reserve Bank's new capital rules for banks and some of it seems to miss the mark. Here's my take after hearing from the governor yesterday.

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The NZ Property Investor Magazine is running its annual survey to see what fellow investors are thinking. Please take a few minutes to complete the survey.

In return, you go in the draw to win some Placemakers vouchers and also get a copy of the issue with all the results [TAKE PART HERE]

 

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Bollard not quite ready to cut rates, economists say

Most economists expect Reserve Bank governor Alan Bollard won't be quite ready to start cutting interest rates this week but a growing majority are expecting a rate cut by the end of September.

Monday, June 2nd 2008, 9:04PM

by Jenny Ruth

The last time Bollard moved his official cash rate (OCR) was in July last year when he raised it to 8.25%.

A survey by Bloomberg News last week found 13 of 14 economists now expect Bollard to cut rates this year and 10 of them expect the cut by September 30.

The one hold-out is Westpac and chief economist Brendan O'Donovan doesn't expect a rate cut any earlier than March 2009.

"The statement will be far more hawkish than the market expects," O'Donovan says. He agrees weak data over coming months will bring forward the timing of the first rate cut from June or September 2009, but "we think the market has gotten ahead of itself."

The predominant problem for consumers and businesses at present is high costs and inflation. "In that context, it hardly makes sense for the Reserve Bank to say: 'Here's a bit more inflation, does that help?'" O'Donovan says.

Nick Tuffley, chief economist at ASB Bank agrees inflation considerations will rule out an imminent rate cut but Thursday's monetary policy statement "will place much greater weight on clear signs that the economy has come to a halt, opening the window to OCR cuts later this year."

As well as existing inflation, the Reserve Bank will be wary of the risk the New Zealand dollar falls rapidly, boosting imported inflation, Tuffley says.

He doesn't expect any strong signal of subsequent rate cuts but that the market will have reason to continue pricing in a first rate cut "in the vicinity of October."

However, Macquarie Bank's economists say "extremely poor labour market and retail sales data confirmed that the economy had hit a wall at the start of 2008 that rate cuts were needed sooner rather than later."

« Home loan report: Budget stalls rate reliefOCR unchanged, but coming down sooner than expected »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 ▲4.05 4.49
ANZ Special - 3.55 ▲3.55 3.99
ASB Bank 5.20 3.89 4.05 4.39
ASB Bank Special - 3.39 3.55 3.89
BNZ - Classic - 3.49 3.45 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 ▼5.65 ▼4.75 ▼4.75 -
Credit Union North 6.45 - - -
Credit Union South ▼5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.54 3.54 3.69
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 4.14 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.39 3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - ▼3.39 3.45 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 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.39 3.45 3.99
Median 5.34 4.04 4.09 4.39

Last updated: 4 December 2019 9:11am

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