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: Monday, May 23rd, 11:19AM

Mortgages

rss
Latest Headlines

Even higher interest rates forecast

ANZ says the Reserve Bank has to work harder to fight inflation and is now predicting back-to-back 50 basis point OCR increases.

Tuesday, March 8th 2022, 2:33PM

by Eric Frykberg

ANZ has dramatically increased its inflation forecast because of the war against Ukraine. Its economists now say the Consumers Price Index (CPI) will peak at 7.4% in the second quarter of this year, rather and its earlier forecast of 6.4%. 

It is also above the level forecast by the Reserve Bank (RBNZ).

It is now sayin that the official cash rate will peak at 3.5% in April 2023, rather than its earlier forecast of 3%. Currently, the OCR sits at 1%.
 
They say the rise in commodity prices such as oil and wheat will flow on to other parts of the economy. 

The “change comes primarily on the back of our updated CPI (consumers price index) forecasts that now have inflation peaking at a broad-based 7.4% in Q2, rather than the RBNZ’s MPS (monetary policy statement) forecast of a 6.6% peak in Q1”, ANZ chief economist Sharon Zollner says.
 
These forecasts could encourage mortgage holders to seek to lock in  longer-term borrowings via their brokers than they do now.
 
The ASB is also hawkish on inflation – its number is less precise than the ANZ's – but is in the same ballpark: above 7%.
 
Like the ANZ, the ASB thinks this will worry the RBNZ. But it is still forecasting 25 point rises in the OCR, not 50 point hikes.
 
Kiwibank thinks the OCR will rise steadily to to 3% and thinks inflation will  surpass the RBNZ's figure of 6.6%, but it does not say by how much.   
 
New Zealand's inflation outlook will be affected by experience in the United States, with Reuters reporting a consensus among economists of 7.9% when the official number comes out this week.

Tags: ANZ

« Women disadvantaged by working from home – reportBolton steps back; bank boss steps in »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
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
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 4.29 5.09 5.35
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - ▲4.19 - -
The Co-operative Bank - Owner Occ 5.45 ▲4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 ▲4.79 5.69 5.95
TSB Bank 5.59 5.14 ▼5.79 6.15
TSB Special 4.79 4.34 ▼4.99 5.35
Unity 5.65 4.80 5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 19 May 2022 10:42am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com