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

OCR on hold till August - HSBC

Strong growth and a booming housing market mean that HSBC now expects the Reserve Bank to hold off on an OCR cut until August.

Monday, May 30th 2016, 11:07AM

by Miriam Bell

In a Reserve Bank Observer Update today, HSBC announced they have changed their call on the likely date of another OCR cut.

The bank’s chief economist, Paul Bloxham, said the Reserve Bank will cut the OCR further – but it won’t be in June as they previously expected.

“We remain of the view that the Reserve Bank still has a problem with low inflation and will still be worried about the level of inflation expectations.

“But we now favour a 25bp cut in August, after the second quarter CPI print.”

If the Reserve Bank was desperately worried about inflation, there was nothing to prevent it cutting the OCR again in April, yet it chose not to, Bloxham said.

“Not much has changed on the domestic economy since six weeks ago, or indeed, since it cut the cash rate to 2.25% on 10 March.”

Rather, growth has remained strong, the first quarter CPI print was in line with the Reserve Bank’s forecasts, and inflation expectations have lifted slightly.

On top of this, the ongoing strength of the housing market is a concern.

Bloxham said the global interest rate environment has also shifted somewhat, with growing chances of a US Federal Reserve hike in July.

This would be a positive development for the Reserve Bank as it should lead to downward pressure on the NZD, which would help inflation and support growth.

For these reasons, HSBC thinks the Reserve Bank will wait a bit longer to cut the OCR, Bloxham said.

“This tactic would have the added advantage of allowing the Reserve Bank to see the second quarter CPI print and to get a bit more clarity on the Federal Reserve’s likely moves.”

Not so long ago, expectations of a June cut to the OCR were dominant among commentators.

However, recently, a change in tone has started to become evident.

Last week, both ANZ and BNZ cast doubts on the likelihood of an OCR cut in June, while ASB said it was now a 50:50 proposition.

 

 

Tags: ANZ ASB banks BNZ HSBC interest rates OCR OCR forecasts RBNZ Reserve Bank

« Budget unlikely to change Reserve Bank viewsLess urgency to cut OCR but bias remains »

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