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

NZ's Financial Adviser News Centre

GR Logo close ad
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: Thursday, January 27th, 12:58PM

Mortgages

Mortgage Rates Daily Commentary
Thursday 27 January 2022  Add your comment
We're borrowing too much: Bagrie

Economist Cameron Bagrie reckons CCCFA isn't the big issue; rather it's the amount of borrowing. [READ ON]

rss
Latest Headlines

Survey shows 100 pt cut highly likely

Reserve Bank governor Alan Bollard is almost universally expected to slash rates again in December by at least the same magnitude as October’s unprecedented cut reflecting the increasingly gloomy global growth outlook and the collapse of inflation domestically.

Friday, November 21st 2008, 6:14AM

by Jenny Ruth

All nine economists surveyed by www.goodreturns.co.nz now expect Bollard will cut his official cash rate (OCR) from 6.50% to 5.50%. In October, he cut the OCR from 7.50%, the biggest move since the central bank introduced the measure in March 1999.

"The central bank has a very clear mandate: to keep inflation in a zero to 3% bank. The key think that’s happening is inflation is collapsing and that gives them the green light to slash rates," says Stephen Toplis, an economist at Bank of New Zealand.

"Our own forecasts now have zero inflation over the next six months."

Like Hayden Atkins at Macquarie Bank, Toplis is now wondering whether Bollard might cut the OCR by 150 basis points to just 5%.

Atkins says the US, European and British economies are in deep recession, growth in the developing world has stalled and domestic growth is already weak.

"The housing market has not responded to lower fixed mortgages since early 2008 with activity severely depressed. Non-residential construction activity is also set to slow dramatically, given the effects of the credit crunch," Atkins says.

Collapsing dairy prices are also posing "a huge risk to growth. This means that the current recession is now likely to be magnified into something much worse.

Robin Clements at UBS New Zealand had previously been picking a 75 basis point cut but now believes a cut of at least 100 points is inevitable, if only to avoid disappointing financial markets which already have a 100 point cut fully priced in.

"It’s not a good time to disappoint the market," Clements says. Only a few weeks ago, concensus expectations were for a 50 basis point cut but now economists are starting to think a 150 point cut might be on the cards, he says.

Until the global credit crunch took a severe turn for the worse in September, 25 basis point changes to the OCR were the norm.

« Short, yes, but how short?OCR cut to 7.5% »

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 4.60 3.65 4.15 4.69
ANZ 4.79 4.25 4.95 5.35
ANZ Blueprint to Build 2.03 - - -
ANZ Special - 3.65 4.35 4.75
ASB Back My Build 2.29 - - -
ASB Bank 4.60 3.65 4.15 4.69
Avanti Finance 4.55 - - -
Basecorp Finance 5.49 - - -
Bluestone 4.09 4.29 4.86 5.09
BNZ - Classic - 3.65 4.35 4.69
BNZ - Mortgage One 5.15 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Rapid Repay 4.95 - - -
BNZ - Std, FlyBuys 4.95 4.25 4.95 5.29
BNZ - TotalMoney 4.95 - - -
CFML Loans 5.35 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 3.59 4.09 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 5.25 4.25 4.75 -
HSBC Premier 4.49 2.19 2.45 2.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 4.25 3.49 4.05 4.55
Kainga Ora 4.60 4.03 4.68 5.07
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 4.25 4.54 5.20 5.54
Kiwibank - Offset 4.25 - - -
Kiwibank Special 4.25 3.69 4.35 4.69
Liberty 4.84 - - -
Nelson Building Society 4.95 4.29 4.85 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.39 3.54 3.89 4.09
SBS Bank 4.79 3.95 4.49 4.85
SBS Bank Special - 3.45 3.99 4.35
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - 3.45 - -
The Co-operative Bank - Owner Occ 4.75 3.65 4.35 4.69
The Co-operative Bank - Standard 4.75 4.15 4.85 5.19
TSB Bank 5.34 4.09 4.74 4.99
TSB Special 4.54 3.29 3.94 4.19
Unity 5.65 4.15 4.60 -
Wairarapa Building Society 4.99 4.05 4.50 -
Lender Flt 1yr 2yr 3yr
Westpac 5.09 4.29 4.95 5.29
Westpac - Offset 5.09 - - -
Westpac Special - 3.69 4.35 4.69
Median 4.77 3.69 4.42 4.69

Last updated: 19 January 2022 12:41pm

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