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

NZ's Financial Adviser News Centre

GR Logo close ad  |        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Wednesday, October 27th, 3:46PM


Mortgage Rates Daily Commentary
Tuesday 26 October 2021  Add your comment
What do retired bank CEOs do? Find out here

We've had a few banks get new CEOs this year. Two of the big banks, BNZ and Westpac have new leaders. SBS Bank CEO Shaun Drylie stepped aside recently and made some pointed comments.

Also, The Co-Operative Bank CEO David Cunningham stepped down. Instead of picking up some new gig in banking he is off on @DavesBikeDream. Yesterday David started on a Make-A-Wish fund raising cycle trip from the bottom of the South Island to the top of the North Island. His goal is to raise $30,000 for the charity so it can grant the wishes of New Zealand children who have critical illnesses to give them hope, strength and joy.

If you would like to tip a few dollars into the pot for a great cause then click here.

TMM is onboard and I hope you will join us supporting David.

We are seeing a raft of increases in home loan rates - see all the red below.

The mortgage industry had to work harder to help people buffeted by economic turmoil to switch their mortgage arrangements, a webinar on product replacement has been told.[READ ON]

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 4.55 ▲3.25 ▲3.75 ▲3.99
ANZ 4.59 ▲3.84 ▲4.30 ▲4.54
ANZ Blueprint to Build 1.68 - - -
ANZ Special - ▲3.24 ▲3.70 ▲3.94
ASB Back My Build 2.04 - - -
ASB Bank 4.45 ▲3.25 ▲3.75 ▲3.99
Basecorp Finance 5.49 - - -
Bluestone ▲3.74 ▲3.54 ▲3.89 ▲4.09
BNZ - Classic - ▲3.24 ▲3.79 ▲3.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 4.70 ▲3.84 ▲4.39 ▲4.59
BNZ - TotalMoney 4.70 - - -
CFML Loans 5.15 - - -
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 - - -
Credit Union Baywide 5.65 3.95 ▲4.10 -
Credit Union South 5.65 3.95 ▲4.10 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 4.99 3.80 3.90 -
Lender Flt 1yr 2yr 3yr
HSBC Premier 4.49 2.19 2.45 2.69
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC ▲4.15 ▲2.89 ▲3.29 ▲3.49
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 4.00 ▲4.14 ▲4.44 ▲4.84
Kiwibank - Offset 4.00 - - -
Kiwibank Special 3.75 ▲3.29 ▲3.59 ▲3.99
Liberty 5.69 - - -
Nelson Building Society 4.95 2.99 3.24 -
Lender Flt 1yr 2yr 3yr
Pepper Essential 4.79 - - -
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 3.05 3.45 3.75
SBS Bank Special - 2.55 2.95 3.25
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - ▲2.79 - -
The Co-operative Bank - Owner Occ 4.55 ▲2.99 ▲3.60 ▲3.89
The Co-operative Bank - Standard 4.55 ▼3.49 ▲4.10 ▲4.39
TSB Bank 5.34 ▲3.75 ▲4.20 ▲4.44
TSB Special 4.54 ▲2.94 ▲3.40 ▲3.64
Wairarapa Building Society 4.99 3.55 3.49 -
Lender Flt 1yr 2yr 3yr
Westpac 4.84 ▲3.79 ▲4.39 ▲4.59
Westpac - Offset 4.84 - - -
Westpac Special - ▲3.19 ▲3.79 ▲3.99
Median 4.57 3.24 3.70 3.99

Last updated: 27 October 2021 8:49am

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