About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, December 13th, 10:03PM
Mortgage Rates Daily Commentary
Friday 13 December 2019  Add your comment
Reserve Bank demands improvements from ANZ; Record house prices

The Reserve Bank has demanded ANZ makes improvements to its internal processes after a spate of recent scandals: [READ ON]

New Zealand’s housing market resurgence continues to gain momentum with the latest REINZ data showing record prices around the country: [READ ON]

rss
Latest Headlines

NZ central bank to cut rates in next 3 months

The Reserve Bank of New Zealand is likely to cut interest rates in the next three months as growing evidence of a slump in economic growth outweighs concern about speeding inflation.

Friday, July 18th 2008, 9:57AM

by Jonathan Underhill

The bank will keep the official cash rate unchanged at 8.25% at its July 24 review, according to nine of 12 economists in a Good Returns.co.nz survey this week. Three predict a 25 basis points cut. Of those picking no change next week, six economists say the bank will move on Sept. 11.

Governor Alan Bollard faces an ugly mix of inflation that has soared above his 1% to 3% target range in an economy that probably tipped into recession this year. Some economists predict annual inflation will peak at more than 5% in the third quarter, well above the central bank's 4.7% forecast.

"It is a tough call for a central bank with an economy probably in recession but inflation stubbornly high and rising," Doug Steel, economist at Westpac Banking Corp., told Good Returns. Bollard "will be wary of cutting too aggressively, raising the possibility of having to make an embarrassing U-turn."

New Zealand was the first nation in the world to adopt an explicit central bank inflation target, in 1990, a target that has become the norm for central banks.

Prolonged Effects

The Policy Targets Agreement allows Bollard to look through short-term price shocks as he seeks to control inflation through an 18-month horizon. Soaring global prices for food, fuel and raw materials, which the bank can't control, are having a prolonged impact on prices.

Inflation accelerated in the second quarter to the fastest pace in 18 years, with the annual 4% rate faster than the 3.8% annual pace predicted by economists and the central bank.

Still, non-tradables inflation (generated domestically and not influenced by the exchange rate) was 0.9% in the second quarter, less than the central bank's 1% estimate.

Economists including Bank of New Zealand's Stephen Toplis this week said the central bank's decision whether to cut rates next week or in September may come down to the weight it puts on an inflation measure excluding food and energy.

"The RBNZ might just buy itself some more time," Toplis said in a note this week. "Whatever the case, the easing cycle is about to begin and it should be a long one, as monetary policy is called upon to drag the New Zealand economy from its current malaise."

« Home loan approval rates falling sharplyOCR reduced to 8.00% »

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
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 ▼5.20 ▲4.20 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - ▲3.45 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 ▼3.89 ▼4.05 ▼4.39
Sovereign Special - ▼3.39 ▼3.55 ▼3.89
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 3.99 4.07 4.39

Last updated: 9 December 2019 9:02am

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
 
Site by Web Developer and eyelovedesign.com