About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, July 19th, 6:10PM
Mortgage Rates Daily Commentary
Friday 19 July 2019  Add your comment
Kiwi takes over NAB; Non-banks react to LVR extensions

A Kiwi is set to take over as CEO of Bank of New Zealand's parent company, National Australia Bank. [READ ON]

Back home non-bank lenders react to the RBNZ's idea of extending LVR restrictions to their sector. [READ ON]

And we have a new video. Loan Market, the number one team in Australasia, is looking to recruit a new person. Paulette Trotter talks to Bruce Patten about the business, the volume of loans written and what she is looking for in a new team member. [WATCH IT HERE]

rss
Latest Headlines

More OCR cuts are on the way - RBNZ

The Reserve Bank has confirmed that further OCR cuts are likely to be needed.

Wednesday, July 29th 2015, 10:32AM

by Miriam Bell

Further monetary policy easing and exchange rate depreciation are required for the good of economy, Reserve Bank governor Graeme Wheeler said in a speech in Tauranga this morning.

Of late, the New Zealand economy has experienced a series of shocks - notably plunging dairy prices.

Wheeler said there were risks and uncertainties around the inflation outlook and that, despite recent declines, the exchange rate remains too high for current economic conditions. 

“At current levels of export prices, a more substantial exchange rate depreciation will be required to stabilise the net external liabilities position relative to GDP.”

He noted that current monetary policy settings are providing stimulus to the economy when growth is around 2.5%, which is slightly below potential. 

However, Wheeler poured cold water on the idea that extensive interest rate cuts are on the way this year.

He said the large declines in interest rates predicted by some could only be consistent with the economy moving into recession. 

Contrary to this, the RBNZ believes several factors are supporting economic growth. 

These include the easing in monetary conditions, continued high levels of migration and labour force participation, ongoing growth in construction, and continued strength in the services sector.

In returning inflation to the mid-point of the target band, the RBNZ has to avoid unnecessary volatility in output, interest rates, and the exchange rate.

Wheeler said that aiming to return inflation to around its medium-term target level in about nine to 12 months’ time is an appropriate speed. 

But, as the economy is constantly experiencing shocks and disturbances, policies may need to change, he continued. 

For this reason, the RBNZ regularly reviews and, where necessary, revises its policy settings to meet its price stability objectives.

The RBNZ will be reviewing its growth forecasts in the September monetary policy statement.

Meanwhile, the RBNZ remains conscious of the impact that low interest rates might have on the housing market, Wheeler added. 

Lower interest rates could exacerbate the existing housing pressures in Auckland by further stimulating housing demand. 

However, in the present situation, raising interest rates would be inappropriate as it would put upward pressure on the exchange rate and further dampen CPI inflation, he said.

While the RBNZ remains concerned about the financial stability risks posed by a major correction in Auckland house prices, it believes that macro prudential policy is the most helpful way to ease some of the pressure.

The proposed LVR measures and the policy initiatives announced by Government in the 2015 Budget should begin to ease the impact of investor activity, Wheeler said.

“A strong supply response over several years is needed to address Auckland’s housing imbalance.

“But macro-prudential policy can help to lower the financial and economic risks while important regulatory and infrastructure issues are addressed and additional investment in new housing takes place.” 

Tags: banks Mortgage Rates OCR OCR forecasts RBNZ

« No surprises in Reserve Bank's moveHSBC does it again »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.69 4.35 4.35 4.55
ANZ Special - 3.85 3.85 4.05
ASB Bank 5.70 4.29 4.35 4.55
ASB Bank Special - 3.89 3.85 4.05
BNZ - Classic - 3.85 3.85 4.05
BNZ - Mortgage One 6.40 - - -
BNZ - Rapid Repay 5.85 - - -
BNZ - Std, FlyBuys 5.80 4.69 4.59 4.79
BNZ - TotalMoney 5.80 - - -
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Lender Flt 1yr 2yr 3yr
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 4.60 4.75 -
Housing NZ Corp 5.80 4.69 4.49 4.45
HSBC Premier 5.89 3.79 3.79 3.89
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.60 ▼4.60 ▼4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.65 - - -
Kiwibank Special - 3.85 ▼3.85 ▼3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 ▼4.69 ▼4.79 -
Resimac 5.30 4.86 4.14 4.19
RESIMAC Special - - - -
SBS Bank 5.79 4.85 5.05 5.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 3.85 3.85 3.99
Sovereign 5.80 4.29 4.35 4.55
Sovereign Special - 3.89 3.85 4.05
The Co-operative Bank - Owner Occ 5.65 3.89 3.89 4.05
The Co-operative Bank - Standard 5.65 4.39 4.39 4.55
TSB Bank 5.69 4.45 4.35 4.55
TSB Special - 3.95 3.85 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.79 4.69 4.79 5.19
Westpac - Offset 5.79 - - -
Westpac Special - 3.85 3.85 4.05
Median 5.80 4.35 4.35 4.19

Last updated: 19 July 2019 10:59am

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