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, April 2nd, 10:34PM

Mortgages

Mortgage Rates Daily Commentary
Thursday 2 April 2020  Add your comment
Bank margins under pressure; Will advisers leave the industry?

Bank margins are under pressure amid record low interest rates and lenders may not be able to cut mortgage rates much further, according to a new report from KPMG: [READ ON]

Advisers who are new to the industry will be most likely to drop out due to Covid-19 economic disruption, industry commentators say: [READ ON]

rss
Latest Headlines

Bollard spooks markets

Reserve Bank governor Alan Bollard spooked financial markets slightly into thinking he may raise interest rates sooner than they had anticipated although, as expected, he's left rates unchanged for now.

Thursday, October 27th 2011, 10:13AM

by Jenny Ruth

Bollard left his official cash rate (OCR) unchanged at its record low 2.50% “for now.”

Dominick Stephens, chief economist at Westpac, says although Bollard acknowledged the weakness in recent inflation and growth data and declining business confidence, he didn't change his stance.

“There was no overt change in how the Reserve Bank sees the outlook for the economy or monetary policy,” Stephens says.

“The market's read that as the Reserve Bank saying: I see the weaker data but I'm not going to change my plan,” he says.

The New Zealand dollar spiked up about 0.6 US cents and both shorter and longer-dated interest rates rose about four basis points in reaction.

Stephens says a significant omission in Bollard's statement was that he didn't mention the strength of the domestic currency.

Robin Clements at UBS New Zealand says the market had been pushing the likely timing of Bollard hiking too far. Clements is still officially expecting a rate hike in December and thinks it will be March at the latest.

Nick Tuffley, chief economist at ASB Bank, says the market reaction should be seen in the context of data this month showing weaker than expected inflation both here and in Australia.

New Zealand inflation rose just 0.4% in the September quarter, nearly half the 0.7% expected by both the market and the Reserve Bank, and Australian underlying inflation in the quarter was just 0.3% compared with market expectations of 0.6%.

Bollard said he sees New Zealand's annual underlying inflation rate settling at 2%, the middle of his zero to 3% target. He says Bollard still does have a bias towards raising rates and if the impact on the New Zealand economy from the worsening situation in Europe is mild, then he expects the central bank will raise the OCR in March.

« Interest rates on hold for nowDetails of Kiwibank's new home loan rates »

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 4.55 3.55 3.89 3.99
AIA Special - 3.05 3.39 3.69
ANZ 4.44 3.55 3.85 4.49
ANZ Special - 3.05 3.35 3.99
ASB Bank 4.45 3.55 3.89 3.99
ASB Bank Special - 3.05 3.39 3.69
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 3.09 3.35 3.69
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.75 4.10 4.55
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.15 3.15 3.19
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 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 ▼2.95 ▼3.09 ▼3.50
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 3.94 4.08 4.39
Kiwibank 4.40 3.84 4.14 4.40
Kiwibank - Capped - - - -
Kiwibank - Offset 4.40 - - -
Kiwibank Special - 3.09 3.39 3.65
Liberty 5.69 - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society - - - -
Nelson Building Society 4.95 ▼4.09 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.45 3.89 3.94
RESIMAC Special - - - -
SBS Bank 4.54 4.85 5.05 5.49
SBS Bank Special - ▼3.09 ▼3.39 ▼3.69
The Co-operative Bank - Owner Occ 4.40 3.25 3.45 3.69
The Co-operative Bank - Standard 4.40 3.75 3.85 4.19
Lender Flt 1yr 2yr 3yr
TSB Bank 5.34 ▼3.89 ▼4.15 ▼4.49
TSB Special 4.54 ▼3.09 ▼3.35 ▼3.69
Wairarapa Building Society 4.99 3.95 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 3.09 3.39 3.69
Median 4.60 3.65 3.89 3.99

Last updated: 31 March 2020 8:55am

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