|        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Get your tickets to the Mindful Money ethical investment awards CLICK HERE Dismiss
Last Article Uploaded: Monday, June 27th, 9:50PM


Mortgage Rates Daily Commentary
Thursday 23 June 2022  Add your comment
New dealer group option; Your networking event and product launch invite

Mortgage advisers have a new dealer group option to consider. [READ ON]


Be part of the next big leap in small business lending.

Networking event and product launch

Here’s your opportunity to attend a unique and exciting networking event that will give you a glimpse into the future of small business lending.

As Prospa reaches 10 years of being in business and 3 years in NZ, you are invited to come and celebrate with the team at Prospa NZ. You'll hear from Prospa co-founder Beau Bertoli, about the exciting journey so far and his views on where Prospa's next big leap will take them as they launch their brand new Line of Credit to the NZ market.

You'll get exclusive insights into product details, sales tips and commission structures to help you grow your own business when you partner with Prospa, plus the chance to win a special door prize.

Launch functions will be held in Christchurch on July 5 and Auckland on July 6.

REGISTER HERE - numbers are limited


Register Now
Latest Headlines

Surprise at RBNZ’s OCR outlook

The Reserve Bank’s decision to hold the OCR at 1.75% was expected, but economists are surprised at its projection the OCR will remain on hold until late 2019.

Thursday, May 11th 2017, 10:26AM

by Miriam Bell

ASB chief economist Nick Tuffley said the key point in today’s announcement was that the events of the last few months haven’t had an impact on Reserve Bank’s OCR outlook.

Despite positive inflation outcomes and a pick-up in inflation expectations they are sticking to their neutral stance, he said.

“The Reserve Bank’s OCR outlook was unchanged from February’s MPS, still implying a late 2019 tightening. 

“We had expected some bringing forward of the implied tightening to the first half of 2019. And we still think that the Reserve Bank will lift the OCR earlier than its current stance, probably in late 2018.”

Whatever the case, the timeframes involved are a year or more away and that is an eternity in financial markets, Tuffley said.

“At this point, it is clear the Reserve Bank is in no hurry to start putting up the OCR.

“This will contain short term interest rates. But rates are at the mercy of global long term rates and their impact on fixed rates.”

For Westpac acting chief economist Michael Gordon it was surprising that the Reserve Bank has concluded that developments since the February MPS have been neutral for monetary policy.

“We and the market had expected it to signal an earlier start to interest rate hikes,” he said.

“But the Reserve Bank seems to be firmly of the view that the unexpected jump in inflation to 2.2% last quarter was due to temporary factors.”

While Westpac is broadly in agreement with the Reserve Bank that domestic inflation pressures are still subdued, there are still some aspects of their forecasts that concern them, Gordon said.

“Consequently, we still think that OCR hikes will be later than what financial markets were pricing (March 2018), but earlier than the Reserve Bank is signalling (late 2019).”

He added that the Reserve Bank finally acknowledged the slowdown in the housing market over the last six months, which will weigh on growth in household spending.

NZIER senior economist Christina Leung agreed that it was interesting that the Reserve Bank has kept to its neutral stance so strongly.

“The fact that they are maintaining such a flat OCR track and continue to forecast there will be no increase in the OCR until late 2019 is a bit surprising,” she said.

“Depending on developments, we expect an earlier start to the tightening cycle. We expect them to start lifting the OCR from the end of next year.”

However, she was not surprised that the Reserve Bank remains cautious in its outlook.

“Overall, they are probably more comfortable with inflation outcomes but it is offshore issues – particularly uncertainty around the political landscape – which is making them cautious.

“They probably don’t want to boost the NZ dollar with anything too hawkish.”

Read more:

No change to OCR – what the RBNZ said today 

Reaction: OCR – “nothing to see here”

Tags: Mortgage Rates OCR RBNZ Reserve Bank

« No change to OCR: What RB said todayOCR held again - here's what RBNZ had to say »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment



Printable version  


Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 5.95 4.85 5.35 5.65
ANZ 5.94 ▲5.95 ▲6.40 ▲6.59
ANZ Blueprint to Build - - - -
ANZ Special - ▲5.35 ▲5.80 ▲5.99
ASB Bank 5.85 ▲5.35 ▲5.80 ▲5.99
Avanti Finance 5.95 - - -
Basecorp Finance 6.95 - - -
Bluestone 5.89 7.49 8.09 8.19
BNZ - Classic - ▲5.35 ▲5.69 ▲5.99
BNZ - Mortgage One 5.94 - - -
BNZ - Rapid Repay 5.94 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.94 ▲5.95 ▲6.29 ▲6.59
BNZ - TotalMoney 5.94 - - -
CFML Loans 6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Co-operative Bank - First Home Special - 4.75 - -
Co-operative Bank - Owner Occ 5.85 4.85 5.35 5.65
Co-operative Bank - Standard 5.85 5.35 5.85 6.15
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.95 5.45 -
Heartland Bank - Online 4.10 ▲4.40 ▲4.90 ▲5.10
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.10 5.00 5.75 -
HSBC Premier 5.89 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.25 4.39 5.09 5.45
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 5.50 ▲6.19 ▲6.69 ▲6.79
Kiwibank - Offset 5.50 - - -
Kiwibank Special 5.00 ▲5.19 ▲5.69 ▲5.89
Liberty 4.84 - - -
Lender Flt 1yr 2yr 3yr
Nelson Building Society 6.45 ▲5.55 ▲6.15 -
Pepper Money 4.49 - - -
Resimac 6.19 5.60 6.16 6.29
SBS Bank 5.79 5.05 5.69 5.89
SBS Bank Special - 4.55 5.19 5.39
Select Home Loans 4.09 4.29 4.86 5.09
TSB Bank - ▲5.65 5.79 ▲6.45
TSB Special ▲4.89 ▲4.85 4.99 ▲5.65
Unity 5.65 4.95 5.55 -
Wairarapa Building Society 5.74 4.95 5.75 -
Westpac 5.94 ▲5.95 ▲6.29 ▲6.59
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.94 - - -
Westpac Special - ▲5.35 ▲5.69 ▲5.99
Median 5.85 5.05 5.69 5.99

Last updated: 27 June 2022 8:43am

Previous News


News Bites
Compare Mortgage Rates

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